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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 offers value investors a better bang for their buck right now? We'll need to 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.

Marine Harvest ASA and Mondelez are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MHGVY currently has a forward P/E ratio of 11.52, while MDLZ has a forward P/E of 22.78. We also note that MHGVY has a PEG ratio of 0.47. 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. MDLZ currently has a PEG ratio of 3.36.

Another notable valuation metric for MHGVY is its P/B ratio of 2.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MDLZ has a P/B of 3.43.

Based on these metrics and many more, MHGVY holds a Value grade of B, while MDLZ has a Value grade of C.

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


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

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