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SJM vs. MDLZ: Which Stock Is the Better Value Option?
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Investors interested in Food - Miscellaneous stocks are likely familiar with Smucker (SJM - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Smucker has a Zacks Rank of #2 (Buy), while Mondelez 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 SJM has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
SJM currently has a forward P/E ratio of 11.95, while MDLZ has a forward P/E of 19.62. We also note that SJM has a PEG ratio of 1.84. 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. MDLZ currently has a PEG ratio of 2.17.
Another notable valuation metric for SJM is its P/B ratio of 1.69. 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, MDLZ has a P/B of 3.02.
These metrics, and several others, help SJM earn a Value grade of B, while MDLZ has been given a Value grade of C.
SJM sticks out from MDLZ in both our Zacks Rank and Style Scores models, so value investors will likely feel that SJM is the better option right now.
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SJM vs. MDLZ: Which Stock Is the Better Value Option?
Investors interested in Food - Miscellaneous stocks are likely familiar with Smucker (SJM - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Smucker has a Zacks Rank of #2 (Buy), while Mondelez 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 SJM has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
SJM currently has a forward P/E ratio of 11.95, while MDLZ has a forward P/E of 19.62. We also note that SJM has a PEG ratio of 1.84. 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. MDLZ currently has a PEG ratio of 2.17.
Another notable valuation metric for SJM is its P/B ratio of 1.69. 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, MDLZ has a P/B of 3.02.
These metrics, and several others, help SJM earn a Value grade of B, while MDLZ has been given a Value grade of C.
SJM sticks out from MDLZ in both our Zacks Rank and Style Scores models, so value investors will likely feel that SJM is the better option right now.