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GO vs. DNUT: Which Stock Is the Better Value Option?
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Investors interested in Consumer Products - Staples stocks are likely familiar with Grocery Outlet Holding Corp. (GO - Free Report) and Krispy Kreme (DNUT - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Grocery Outlet Holding Corp. and Krispy Kreme 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 GO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
GO currently has a forward P/E ratio of 23.68, while DNUT has a forward P/E of 60.17. We also note that GO has a PEG ratio of 2.17. 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. DNUT currently has a PEG ratio of 2.55.
Another notable valuation metric for GO is its P/B ratio of 2.27. 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, DNUT has a P/B of 2.31.
These metrics, and several others, help GO earn a Value grade of B, while DNUT has been given a Value grade of D.
GO has seen stronger estimate revision activity and sports more attractive valuation metrics than DNUT, so it seems like value investors will conclude that GO is the superior option right now.
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GO vs. DNUT: Which Stock Is the Better Value Option?
Investors interested in Consumer Products - Staples stocks are likely familiar with Grocery Outlet Holding Corp. (GO - Free Report) and Krispy Kreme (DNUT - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Grocery Outlet Holding Corp. and Krispy Kreme 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 GO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
GO currently has a forward P/E ratio of 23.68, while DNUT has a forward P/E of 60.17. We also note that GO has a PEG ratio of 2.17. 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. DNUT currently has a PEG ratio of 2.55.
Another notable valuation metric for GO is its P/B ratio of 2.27. 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, DNUT has a P/B of 2.31.
These metrics, and several others, help GO earn a Value grade of B, while DNUT has been given a Value grade of D.
GO has seen stronger estimate revision activity and sports more attractive valuation metrics than DNUT, so it seems like value investors will conclude that GO is the superior option right now.