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ASBFY vs. KRYAY: Which Stock Is the Better Value Option?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Associated British Foods PLC (ASBFY - Free Report) and Kerry Group PLC (KRYAY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Associated British Foods PLC has a Zacks Rank of #2 (Buy), while Kerry Group PLC has a Zacks Rank of #5 (Strong Sell). This means that ASBFY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ASBFY currently has a forward P/E ratio of 13.45, while KRYAY has a forward P/E of 17.42. We also note that ASBFY has a PEG ratio of 1.79. 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. KRYAY currently has a PEG ratio of 2.42.

Another notable valuation metric for ASBFY is its P/B ratio of 1.65. 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, KRYAY has a P/B of 2.04.

These metrics, and several others, help ASBFY earn a Value grade of A, while KRYAY has been given a Value grade of C.

ASBFY stands above KRYAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASBFY is the superior value option right now.


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