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MHGVY or MDLZ: Which Is the Better Value Stock Right Now?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Marine Harvest ASA (MHGVY - Free Report) and Mondelez (MDLZ - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Marine Harvest ASA has a Zacks Rank of #1 (Strong Buy), while Mondelez has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MHGVY likely has seen a stronger improvement to its earnings outlook than MDLZ has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

MHGVY currently has a forward P/E ratio of 10.60, while MDLZ has a forward P/E of 22.98. We also note that MHGVY has a PEG ratio of 0.43. 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. MDLZ currently has a PEG ratio of 3.39.

Another notable valuation metric for MHGVY is its P/B ratio of 2.12. 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, MDLZ has a P/B of 3.45.

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

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


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Mondelez International, Inc. (MDLZ) - free report >>

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