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

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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Kirin Holdings Co. (KNBWY - Free Report) or The Duckhorn Portfolio, Inc. (NAPA - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify 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 #2 (Buy). 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 only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

KNBWY currently has a forward P/E ratio of 10.18, while NAPA has a forward P/E of 32.55. We also note that KNBWY has a PEG ratio of 0.56. 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. NAPA currently has a PEG ratio of 2.88.

Another notable valuation metric for KNBWY is its P/B ratio of 1.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NAPA has a P/B of 2.65.

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

KNBWY has seen stronger estimate revision activity and sports more attractive valuation metrics than NAPA, so it seems like value investors will conclude that KNBWY is the superior option right now.


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

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

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