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KNBWY vs. NAPA: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Kirin Holdings Co. and The Duckhorn Portfolio, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that KNBWY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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 10.46, while NAPA has a forward P/E of 29.09. We also note that KNBWY has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NAPA currently has a PEG ratio of 2.57.

Another notable valuation metric for KNBWY is its P/B ratio of 1.20. 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 2.37.

These metrics, and several others, help KNBWY earn a Value grade of A, while NAPA has been given a Value grade of D.

KNBWY sticks out from NAPA in both our Zacks Rank and Style Scores models, so value investors will likely feel that KNBWY is the better option right now.


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

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

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