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SFM vs. SOVO: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Food - Natural Foods Products sector might want to consider either Sprouts Farmers (SFM - Free Report) or Sovos Brands, Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Sprouts Farmers and Sovos Brands, Inc. have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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 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.
SFM currently has a forward P/E ratio of 13.89, while SOVO has a forward P/E of 33.40. We also note that SFM has a PEG ratio of 1.50. 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. SOVO currently has a PEG ratio of 2.45.
Another notable valuation metric for SFM is its P/B ratio of 3.60. 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, SOVO has a P/B of 4.56.
Based on these metrics and many more, SFM holds a Value grade of A, while SOVO has a Value grade of D.
Both SFM and SOVO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SFM is the superior value option right now.
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SFM vs. SOVO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Food - Natural Foods Products sector might want to consider either Sprouts Farmers (SFM - Free Report) or Sovos Brands, Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Both Sprouts Farmers and Sovos Brands, Inc. have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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 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.
SFM currently has a forward P/E ratio of 13.89, while SOVO has a forward P/E of 33.40. We also note that SFM has a PEG ratio of 1.50. 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. SOVO currently has a PEG ratio of 2.45.
Another notable valuation metric for SFM is its P/B ratio of 3.60. 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, SOVO has a P/B of 4.56.
Based on these metrics and many more, SFM holds a Value grade of A, while SOVO has a Value grade of D.
Both SFM and SOVO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SFM is the superior value option right now.