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MHGVY vs. NSRGY: Which Stock Should Value Investors Buy Now?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Marine Harvest ASA (MHGVY - Free Report) and Nestle SA (NSRGY - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Right now, Marine Harvest ASA is sporting a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that MHGVY likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. 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.

MHGVY currently has a forward P/E ratio of 12.10, while NSRGY has a forward P/E of 18.46. We also note that MHGVY has a PEG ratio of 1.42. 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. NSRGY currently has a PEG ratio of 2.96.

Another notable valuation metric for MHGVY is its P/B ratio of 2.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NSRGY has a P/B of 6.96.

Based on these metrics and many more, MHGVY holds a Value grade of B, while NSRGY has a Value grade of D.

MHGVY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MHGVY is likely the superior value option right now.


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