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KRYAY vs. MDLZ: Which Stock Is the Better Value Option?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kerry Group PLC (KRYAY - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Kerry Group PLC and Mondelez 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 KRYAY 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

KRYAY currently has a forward P/E ratio of 20.76, while MDLZ has a forward P/E of 21.95. We also note that KRYAY has a PEG ratio of 1.82. 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. MDLZ currently has a PEG ratio of 5.14.

Another notable valuation metric for KRYAY is its P/B ratio of 2.64. 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, MDLZ has a P/B of 3.33.

These are just a few of the metrics contributing to KRYAY's Value grade of B and MDLZ's Value grade of C.

KRYAY sticks out from MDLZ in both our Zacks Rank and Style Scores models, so value investors will likely feel that KRYAY is the better option right now.


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Mondelez International, Inc. (MDLZ) - free report >>

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