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ASBFY or UTZ: Which Is the Better Value Stock Right Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Associated British Foods PLC (ASBFY - Free Report) and Utz Brands (UTZ - 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Associated British Foods PLC has a Zacks Rank of #1 (Strong Buy), while Utz Brands has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASBFY has an improving earnings outlook. 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.

ASBFY currently has a forward P/E ratio of 16.12, while UTZ has a forward P/E of 30.48. We also note that ASBFY has a PEG ratio of 4.35. 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. UTZ currently has a PEG ratio of 7.74.

Another notable valuation metric for ASBFY is its P/B ratio of 1.24. 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, UTZ has a P/B of 1.57.

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

ASBFY 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 ASBFY is likely the superior value option right now.


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