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KNBWY vs. NAPA: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Kirin Holdings Co. (KNBWY - Free Report) or 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Kirin Holdings Co. and The Duckhorn Portfolio, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 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.

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 12.47, while NAPA has a forward P/E of 25. We also note that KNBWY has a PEG ratio of 0.43. 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 4.11.

Another notable valuation metric for KNBWY is its P/B ratio of 1.33. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NAPA has a P/B of 1.98.

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

KNBWY 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 KNBWY is likely the superior value option right now.


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

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

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