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PFGC vs. SOVO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Food - Natural Foods Products sector have probably already heard of Performance Food Group (PFGC - Free Report) and Sovos Brands, Inc. . 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Performance Food Group and Sovos Brands, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PFGC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
PFGC currently has a forward P/E ratio of 16.27, while SOVO has a forward P/E of 24.83. We also note that PFGC has a PEG ratio of 1.08. 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. SOVO currently has a PEG ratio of 24.83.
Another notable valuation metric for PFGC is its P/B ratio of 2.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SOVO has a P/B of 2.90.
These metrics, and several others, help PFGC earn a Value grade of B, while SOVO has been given a Value grade of D.
PFGC stands above SOVO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PFGC is the superior value option right now.
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PFGC vs. SOVO: Which Stock Is the Better Value Option?
Investors interested in stocks from the Food - Natural Foods Products sector have probably already heard of Performance Food Group (PFGC - Free Report) and Sovos Brands, Inc. . 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Performance Food Group and Sovos Brands, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PFGC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
PFGC currently has a forward P/E ratio of 16.27, while SOVO has a forward P/E of 24.83. We also note that PFGC has a PEG ratio of 1.08. 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. SOVO currently has a PEG ratio of 24.83.
Another notable valuation metric for PFGC is its P/B ratio of 2.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SOVO has a P/B of 2.90.
These metrics, and several others, help PFGC earn a Value grade of B, while SOVO has been given a Value grade of D.
PFGC stands above SOVO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PFGC is the superior value option right now.