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MGPI vs. MDLZ: Which Stock Is the Better Value Option?

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Investors interested in Food - Miscellaneous stocks are likely familiar with MGP (MGPI - Free Report) and Mondelez (MDLZ - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both MGP and Mondelez are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

MGPI currently has a forward P/E ratio of 13.87, while MDLZ has a forward P/E of 20.36. We also note that MGPI has a PEG ratio of 1.26. 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. MDLZ currently has a PEG ratio of 2.44.

Another notable valuation metric for MGPI is its P/B ratio of 2.31. 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 3.43.

These are just a few of the metrics contributing to MGPI's Value grade of B and MDLZ's Value grade of C.

Both MGPI and MDLZ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MGPI is the superior value option right now.


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Mondelez International, Inc. (MDLZ) - free report >>

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