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KHC vs. MHGVY: Which Stock Is the Better Value Option?
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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kraft Heinz (KHC - Free Report) and Marine Harvest ASA (MHGVY - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Kraft Heinz is sporting a Zacks Rank of #2 (Buy), while Marine Harvest ASA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KHC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KHC currently has a forward P/E ratio of 11.09, while MHGVY has a forward P/E of 11.92. We also note that KHC has a PEG ratio of 2.38. 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. MHGVY currently has a PEG ratio of 2.93.
Another notable valuation metric for KHC is its P/B ratio of 0.79. 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, MHGVY has a P/B of 2.32.
These metrics, and several others, help KHC earn a Value grade of B, while MHGVY has been given a Value grade of C.
KHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KHC is likely the superior value option right now.
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KHC vs. MHGVY: Which Stock Is the Better Value Option?
Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kraft Heinz (KHC - Free Report) and Marine Harvest ASA (MHGVY - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Kraft Heinz is sporting a Zacks Rank of #2 (Buy), while Marine Harvest ASA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KHC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KHC currently has a forward P/E ratio of 11.09, while MHGVY has a forward P/E of 11.92. We also note that KHC has a PEG ratio of 2.38. 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. MHGVY currently has a PEG ratio of 2.93.
Another notable valuation metric for KHC is its P/B ratio of 0.79. 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, MHGVY has a P/B of 2.32.
These metrics, and several others, help KHC earn a Value grade of B, while MHGVY has been given a Value grade of C.
KHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KHC is likely the superior value option right now.