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MHGVY or MDLZ: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Marine Harvest ASA (MHGVY - Free Report) or Mondelez (MDLZ - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Marine Harvest ASA and Mondelez are sporting 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 only part of the picture for value investors.

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.

MHGVY currently has a forward P/E ratio of 12.15, while MDLZ has a forward P/E of 20.55. We also note that MHGVY has a PEG ratio of 2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MDLZ currently has a PEG ratio of 2.88.

Another notable valuation metric for MHGVY is its P/B ratio of 2.37. 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, MDLZ has a P/B of 3.31.

These metrics, and several others, help MHGVY earn a Value grade of B, while MDLZ has been given a Value grade of C.

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


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Mondelez International, Inc. (MDLZ) - free report >>

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