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HEINY or NAPA: 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 The Duckhorn Portfolio, Inc. (NAPA - 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.

Currently, Heineken NV has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HEINY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

HEINY currently has a forward P/E ratio of 19.16, while NAPA has a forward P/E of 25.02. We also note that HEINY has a PEG ratio of 1.29. 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 2.04.

Another notable valuation metric for HEINY is its P/B ratio of 2.36. 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 2.47.

These metrics, and several others, help HEINY earn a Value grade of B, while NAPA has been given a Value grade of C.

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


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