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CCU vs. DEO: Which Stock Is the Better Value Option?
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Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU - Free Report) and Diageo (DEO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cervecerias Unidas is sporting a Zacks Rank of #1 (Strong Buy), while Diageo has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCU has an improving earnings 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.
CCU currently has a forward P/E ratio of 12.55, while DEO has a forward P/E of 21.18. We also note that CCU has a PEG ratio of 0.54. 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. DEO currently has a PEG ratio of 2.89.
Another notable valuation metric for CCU is its P/B ratio of 1.76. 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, DEO has a P/B of 8.52.
These are just a few of the metrics contributing to CCU's Value grade of B and DEO's Value grade of C.
CCU sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now.
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CCU vs. DEO: Which Stock Is the Better Value Option?
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU - Free Report) and Diageo (DEO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Cervecerias Unidas is sporting a Zacks Rank of #1 (Strong Buy), while Diageo has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCU has an improving earnings 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.
CCU currently has a forward P/E ratio of 12.55, while DEO has a forward P/E of 21.18. We also note that CCU has a PEG ratio of 0.54. 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. DEO currently has a PEG ratio of 2.89.
Another notable valuation metric for CCU is its P/B ratio of 1.76. 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, DEO has a P/B of 8.52.
These are just a few of the metrics contributing to CCU's Value grade of B and DEO's Value grade of C.
CCU sticks out from DEO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCU is the better option right now.