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CCEP or MNST: Which Is the Better Value Stock Right Now?

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Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Coca-Cola European (CCEP - Free Report) and Monster Beverage (MNST - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Currently, both Coca-Cola European and Monster Beverage are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

CCEP currently has a forward P/E ratio of 14.43, while MNST has a forward P/E of 34.34. We also note that CCEP has a PEG ratio of 1.24. 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. MNST currently has a PEG ratio of 3.02.

Another notable valuation metric for CCEP is its P/B ratio of 3.05. 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, MNST has a P/B of 7.96.

Based on these metrics and many more, CCEP holds a Value grade of A, while MNST has a Value grade of D.

Both CCEP and MNST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CCEP is the superior value option right now.


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Monster Beverage Corporation (MNST) - free report >>

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