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CAG vs. MDLZ: Which Stock Is the Better Value Option?
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Investors interested in Food - Miscellaneous stocks are likely familiar with Conagra Brands (CAG - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
Conagra Brands has a Zacks Rank of #1 (Strong Buy), while Mondelez has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that CAG 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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CAG currently has a forward P/E ratio of 14.56, while MDLZ has a forward P/E of 20.81. We also note that CAG has a PEG ratio of 2.08. 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 3.07.
Another notable valuation metric for CAG is its P/B ratio of 2.10. 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, MDLZ has a P/B of 3.31.
These metrics, and several others, help CAG earn a Value grade of B, while MDLZ has been given a Value grade of C.
CAG sticks out from MDLZ in both our Zacks Rank and Style Scores models, so value investors will likely feel that CAG is the better option right now.
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CAG vs. MDLZ: Which Stock Is the Better Value Option?
Investors interested in Food - Miscellaneous stocks are likely familiar with Conagra Brands (CAG - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
Conagra Brands has a Zacks Rank of #1 (Strong Buy), while Mondelez has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that CAG 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 are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CAG currently has a forward P/E ratio of 14.56, while MDLZ has a forward P/E of 20.81. We also note that CAG has a PEG ratio of 2.08. 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 3.07.
Another notable valuation metric for CAG is its P/B ratio of 2.10. 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, MDLZ has a P/B of 3.31.
These metrics, and several others, help CAG earn a Value grade of B, while MDLZ has been given a Value grade of C.
CAG sticks out from MDLZ in both our Zacks Rank and Style Scores models, so value investors will likely feel that CAG is the better option right now.