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KNBWY or NAPA: Which Is the Better Value Stock Right Now?

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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Kirin Holdings Co. (KNBWY - Free Report) and The Duckhorn Portfolio, Inc. (NAPA - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Kirin Holdings Co. has a Zacks Rank of #1 (Strong Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KNBWY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

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.

KNBWY currently has a forward P/E ratio of 12.80, while NAPA has a forward P/E of 27.05. We also note that KNBWY has a PEG ratio of 0.44. 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. NAPA currently has a PEG ratio of 4.45.

Another notable valuation metric for KNBWY is its P/B ratio of 1.36. 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, NAPA has a P/B of 2.14.

These metrics, and several others, help KNBWY earn a Value grade of A, while NAPA has been given a Value grade of C.

KNBWY sticks out from NAPA in both our Zacks Rank and Style Scores models, so value investors will likely feel that KNBWY is the better option right now.


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Kirin Holdings Co. (KNBWY) - free report >>

The Duckhorn Portfolio, Inc. (NAPA) - free report >>

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