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KNBWY vs. NAPA: Which Stock Should Value Investors Buy Now?

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Investors interested in Beverages - Alcohol stocks are likely familiar with Kirin Holdings Co. (KNBWY - Free Report) and The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Right now, Kirin Holdings Co. is sporting a Zacks Rank of #1 (Strong Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KNBWY has an improving earnings outlook. 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.

KNBWY currently has a forward P/E ratio of 10.74, while NAPA has a forward P/E of 31.71. We also note that KNBWY has a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NAPA currently has a PEG ratio of 2.92.

Another notable valuation metric for KNBWY is its P/B ratio of 1.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NAPA has a P/B of 2.56.

These are just a few of the metrics contributing to KNBWY's Value grade of A and NAPA's Value grade of D.

KNBWY stands above NAPA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNBWY is the superior value option right now.


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Kirin Holdings Co. (KNBWY) - free report >>

The Duckhorn Portfolio, Inc. (NAPA) - free report >>

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