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FMX vs. MNST: Which Stock Is the Better Value Option?
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Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Fomento Economico (FMX - Free Report) and Monster Beverage (MNST - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Fomento Economico has a Zacks Rank of #2 (Buy), while Monster Beverage has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that FMX likely has seen a stronger improvement to its earnings outlook than MNST has recently. But this is just one piece of the puzzle 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FMX currently has a forward P/E ratio of 17.10, while MNST has a forward P/E of 38.89. We also note that FMX has a PEG ratio of 1.50. 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. MNST currently has a PEG ratio of 3.52.
Another notable valuation metric for FMX is its P/B ratio of 3.75. 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, MNST has a P/B of 6.90.
These metrics, and several others, help FMX earn a Value grade of A, while MNST has been given a Value grade of D.
FMX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FMX is likely the superior value option right now.
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FMX vs. MNST: Which Stock Is the Better Value Option?
Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Fomento Economico (FMX - Free Report) and Monster Beverage (MNST - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Fomento Economico has a Zacks Rank of #2 (Buy), while Monster Beverage has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that FMX likely has seen a stronger improvement to its earnings outlook than MNST has recently. But this is just one piece of the puzzle 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FMX currently has a forward P/E ratio of 17.10, while MNST has a forward P/E of 38.89. We also note that FMX has a PEG ratio of 1.50. 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. MNST currently has a PEG ratio of 3.52.
Another notable valuation metric for FMX is its P/B ratio of 3.75. 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, MNST has a P/B of 6.90.
These metrics, and several others, help FMX earn a Value grade of A, while MNST has been given a Value grade of D.
FMX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FMX is likely the superior value option right now.