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

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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Kerry Group PLC (KRYAY - Free Report) or Mondelez (MDLZ - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Right now, both Kerry Group PLC and Mondelez are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.

KRYAY currently has a forward P/E ratio of 20.13, while MDLZ has a forward P/E of 22.59. We also note that KRYAY has a PEG ratio of 1.77. 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. MDLZ currently has a PEG ratio of 5.29.

Another notable valuation metric for KRYAY is its P/B ratio of 2.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MDLZ has a P/B of 3.43.

These metrics, and several others, help KRYAY earn a Value grade of B, while MDLZ has been given a Value grade of C.

Both KRYAY and MDLZ are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KRYAY is the superior value option right now.

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