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CCU or STZ: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Cervecerias Unidas (CCU - Free Report) and Constellation Brands (STZ - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cervecerias Unidas and Constellation Brands are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CCU 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 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.
CCU currently has a forward P/E ratio of 10.94, while STZ has a forward P/E of 20.56. We also note that CCU has a PEG ratio of 0.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STZ currently has a PEG ratio of 1.90.
Another notable valuation metric for CCU is its P/B ratio of 1.22. 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, STZ has a P/B of 4.56.
These metrics, and several others, help CCU earn a Value grade of A, while STZ has been given a Value grade of D.
CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than STZ, so it seems like value investors will conclude that CCU is the superior option right now.
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CCU or STZ: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Cervecerias Unidas (CCU - Free Report) and Constellation Brands (STZ - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cervecerias Unidas and Constellation Brands are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CCU 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 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.
CCU currently has a forward P/E ratio of 10.94, while STZ has a forward P/E of 20.56. We also note that CCU has a PEG ratio of 0.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STZ currently has a PEG ratio of 1.90.
Another notable valuation metric for CCU is its P/B ratio of 1.22. 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, STZ has a P/B of 4.56.
These metrics, and several others, help CCU earn a Value grade of A, while STZ has been given a Value grade of D.
CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than STZ, so it seems like value investors will conclude that CCU is the superior option right now.