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HEINY or DEO: Which Is the Better Value Stock Right Now?
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY - Free Report) and Diageo (DEO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Heineken NV and Diageo are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
HEINY currently has a forward P/E ratio of 21, while DEO has a forward P/E of 26.18. We also note that HEINY has a PEG ratio of 0.84. 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. DEO currently has a PEG ratio of 2.84.
Another notable valuation metric for HEINY is its P/B ratio of 3.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 9.19.
These are just a few of the metrics contributing to HEINY's Value grade of B and DEO's Value grade of D.
Both HEINY and DEO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEINY is the superior value option right now.
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HEINY or DEO: Which Is the Better Value Stock Right Now?
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Heineken NV (HEINY - Free Report) and Diageo (DEO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Heineken NV and Diageo are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
HEINY currently has a forward P/E ratio of 21, while DEO has a forward P/E of 26.18. We also note that HEINY has a PEG ratio of 0.84. 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. DEO currently has a PEG ratio of 2.84.
Another notable valuation metric for HEINY is its P/B ratio of 3.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DEO has a P/B of 9.19.
These are just a few of the metrics contributing to HEINY's Value grade of B and DEO's Value grade of D.
Both HEINY and DEO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HEINY is the superior value option right now.