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ASBFY vs. UTZ: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Associated British Foods PLC (ASBFY - Free Report) and Utz Brands (UTZ - 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, Associated British Foods PLC has a Zacks Rank of #2 (Buy), while Utz Brands has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than UTZ has recently. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ASBFY currently has a forward P/E ratio of 15.03, while UTZ has a forward P/E of 34.18. We also note that ASBFY has a PEG ratio of 2.23. 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. UTZ currently has a PEG ratio of 3.29.

Another notable valuation metric for ASBFY is its P/B ratio of 1.30. 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, UTZ has a P/B of 1.78.

Based on these metrics and many more, ASBFY holds a Value grade of A, while UTZ has a Value grade of C.

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


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Associated British Foods PLC (ASBFY) - free report >>

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