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BRFS or KRYAY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of BRF (BRFS - Free Report) and Kerry Group PLC (KRYAY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, BRF has a Zacks Rank of #2 (Buy), while Kerry Group PLC has a Zacks Rank of #3 (Hold). This means that BRFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

BRFS currently has a forward P/E ratio of 11.20, while KRYAY has a forward P/E of 20.45. We also note that BRFS has a PEG ratio of 0.27. 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. KRYAY currently has a PEG ratio of 1.80.

Another notable valuation metric for BRFS is its P/B ratio of 1.39. 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, KRYAY has a P/B of 2.58.

Based on these metrics and many more, BRFS holds a Value grade of B, while KRYAY has a Value grade of C.

BRFS has seen stronger estimate revision activity and sports more attractive valuation metrics than KRYAY, so it seems like value investors will conclude that BRFS is the superior option right now.


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