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TSN vs. HRL: Which Stock Is the Better Value Option?
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Investors interested in Food - Meat Products stocks are likely familiar with Tyson Foods (TSN - Free Report) and Hormel Foods (HRL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tyson Foods has a Zacks Rank of #2 (Buy), while Hormel Foods has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TSN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TSN currently has a forward P/E ratio of 11.67, while HRL has a forward P/E of 27.21. We also note that TSN has a PEG ratio of 3.10. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HRL currently has a PEG ratio of 3.66.
Another notable valuation metric for TSN is its P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HRL has a P/B of 3.80.
These metrics, and several others, help TSN earn a Value grade of A, while HRL has been given a Value grade of C.
TSN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TSN is likely the superior value option right now.
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TSN vs. HRL: Which Stock Is the Better Value Option?
Investors interested in Food - Meat Products stocks are likely familiar with Tyson Foods (TSN - Free Report) and Hormel Foods (HRL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tyson Foods has a Zacks Rank of #2 (Buy), while Hormel Foods has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TSN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TSN currently has a forward P/E ratio of 11.67, while HRL has a forward P/E of 27.21. We also note that TSN has a PEG ratio of 3.10. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HRL currently has a PEG ratio of 3.66.
Another notable valuation metric for TSN is its P/B ratio of 1.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HRL has a P/B of 3.80.
These metrics, and several others, help TSN earn a Value grade of A, while HRL has been given a Value grade of C.
TSN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TSN is likely the superior value option right now.