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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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

BRF has a Zacks Rank of #2 (Buy), while Kerry Group PLC has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BRFS likely has seen a stronger improvement to its earnings outlook than KRYAY has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

BRFS currently has a forward P/E ratio of 9.46, while KRYAY has a forward P/E of 19.65. We also note that BRFS has a PEG ratio of 0.23. 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 1.73.

Another notable valuation metric for BRFS is its P/B ratio of 1.35. 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, KRYAY has a P/B of 2.5.

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

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


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BRF S.A. (BRFS) - free report >>

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