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CABGY or DEO: Which Is the Better Value Stock Right Now?
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Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY - Free Report) and Diageo (DEO - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Carlsberg AS has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #4 (Sell). This means that CABGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
CABGY currently has a forward P/E ratio of 19.54, while DEO has a forward P/E of 22.37. We also note that CABGY has a PEG ratio of 2.76. 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. DEO currently has a PEG ratio of 2.88.
Another notable valuation metric for CABGY is its P/B ratio of 4.57. 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, DEO has a P/B of 9.04.
These metrics, and several others, help CABGY earn a Value grade of B, while DEO has been given a Value grade of D.
CABGY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now.
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CABGY or DEO: Which Is the Better Value Stock Right Now?
Investors interested in Beverages - Alcohol stocks are likely familiar with Carlsberg AS (CABGY - Free Report) and Diageo (DEO - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Carlsberg AS has a Zacks Rank of #2 (Buy), while Diageo has a Zacks Rank of #4 (Sell). This means that CABGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
CABGY currently has a forward P/E ratio of 19.54, while DEO has a forward P/E of 22.37. We also note that CABGY has a PEG ratio of 2.76. 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. DEO currently has a PEG ratio of 2.88.
Another notable valuation metric for CABGY is its P/B ratio of 4.57. 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, DEO has a P/B of 9.04.
These metrics, and several others, help CABGY earn a Value grade of B, while DEO has been given a Value grade of D.
CABGY stands above DEO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now.