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MGPI vs. NSRGY: Which Stock Is the Better Value Option?
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Investors with an interest in Food - Miscellaneous stocks have likely encountered both MGP (MGPI - Free Report) and Nestle SA (NSRGY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
MGP has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MGPI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
MGPI currently has a forward P/E ratio of 16.45, while NSRGY has a forward P/E of 19.92. We also note that MGPI has a PEG ratio of 1.50. 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. NSRGY currently has a PEG ratio of 2.42.
Another notable valuation metric for MGPI is its P/B ratio of 2.49. 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, NSRGY has a P/B of 7.13.
Based on these metrics and many more, MGPI holds a Value grade of B, while NSRGY has a Value grade of D.
MGPI sticks out from NSRGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGPI is the better option right now.
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MGPI vs. NSRGY: Which Stock Is the Better Value Option?
Investors with an interest in Food - Miscellaneous stocks have likely encountered both MGP (MGPI - Free Report) and Nestle SA (NSRGY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
MGP has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MGPI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
MGPI currently has a forward P/E ratio of 16.45, while NSRGY has a forward P/E of 19.92. We also note that MGPI has a PEG ratio of 1.50. 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. NSRGY currently has a PEG ratio of 2.42.
Another notable valuation metric for MGPI is its P/B ratio of 2.49. 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, NSRGY has a P/B of 7.13.
Based on these metrics and many more, MGPI holds a Value grade of B, while NSRGY has a Value grade of D.
MGPI sticks out from NSRGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MGPI is the better option right now.