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AGRO vs. LMNR: Which Stock Is the Better Value Option?
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Investors interested in Agriculture - Operations stocks are likely familiar with Adecoagro (AGRO - Free Report) and Limoneira (LMNR - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Adecoagro and Limoneira are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AGRO has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
AGRO currently has a forward P/E ratio of 6, while LMNR has a forward P/E of 74.86. We also note that AGRO has a PEG ratio of 1.56. 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. LMNR currently has a PEG ratio of 4.99.
Another notable valuation metric for AGRO is its P/B ratio of 0.76. 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, LMNR has a P/B of 2.05.
These metrics, and several others, help AGRO earn a Value grade of A, while LMNR has been given a Value grade of D.
AGRO sticks out from LMNR in both our Zacks Rank and Style Scores models, so value investors will likely feel that AGRO is the better option right now.
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AGRO vs. LMNR: Which Stock Is the Better Value Option?
Investors interested in Agriculture - Operations stocks are likely familiar with Adecoagro (AGRO - Free Report) and Limoneira (LMNR - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Adecoagro and Limoneira are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AGRO has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
AGRO currently has a forward P/E ratio of 6, while LMNR has a forward P/E of 74.86. We also note that AGRO has a PEG ratio of 1.56. 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. LMNR currently has a PEG ratio of 4.99.
Another notable valuation metric for AGRO is its P/B ratio of 0.76. 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, LMNR has a P/B of 2.05.
These metrics, and several others, help AGRO earn a Value grade of A, while LMNR has been given a Value grade of D.
AGRO sticks out from LMNR in both our Zacks Rank and Style Scores models, so value investors will likely feel that AGRO is the better option right now.