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UTZ vs. CELH: Which Stock Should Value Investors Buy Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Utz Brands (UTZ - Free Report) and Celsius Holdings Inc. (CELH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Utz Brands and Celsius Holdings Inc. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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 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.

UTZ currently has a forward P/E ratio of 26.16, while CELH has a forward P/E of 80.33. We also note that UTZ has a PEG ratio of 1.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CELH currently has a PEG ratio of 2.56.

Another notable valuation metric for UTZ is its P/B ratio of 1.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CELH has a P/B of 76.77.

These metrics, and several others, help UTZ earn a Value grade of B, while CELH has been given a Value grade of D.

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


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