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ADM vs. AVO: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Agriculture - Operations sector might want to consider either Archer Daniels Midland (ADM - Free Report) or Mission Produce, Inc. (AVO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Archer Daniels Midland has a Zacks Rank of #2 (Buy), while Mission Produce, Inc. has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that ADM likely has seen a stronger improvement to its earnings outlook than AVO has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADM currently has a forward P/E ratio of 12.70, while AVO has a forward P/E of 23.24. We also note that ADM has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVO currently has a PEG ratio of 2.57.
Another notable valuation metric for ADM is its P/B ratio of 1.58. 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, AVO has a P/B of 2.60.
These are just a few of the metrics contributing to ADM's Value grade of A and AVO's Value grade of C.
ADM stands above AVO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADM is the superior value option right now.
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ADM vs. AVO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Agriculture - Operations sector might want to consider either Archer Daniels Midland (ADM - Free Report) or Mission Produce, Inc. (AVO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Archer Daniels Midland has a Zacks Rank of #2 (Buy), while Mission Produce, Inc. has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that ADM likely has seen a stronger improvement to its earnings outlook than AVO has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADM currently has a forward P/E ratio of 12.70, while AVO has a forward P/E of 23.24. We also note that ADM has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVO currently has a PEG ratio of 2.57.
Another notable valuation metric for ADM is its P/B ratio of 1.58. 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, AVO has a P/B of 2.60.
These are just a few of the metrics contributing to ADM's Value grade of A and AVO's Value grade of C.
ADM stands above AVO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADM is the superior value option right now.