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BZLFY vs. CELH: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Bunzl PLC (BZLFY - Free Report) or Celsius Holdings Inc. (CELH - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Bunzl PLC has a Zacks Rank of #2 (Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BZLFY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BZLFY currently has a forward P/E ratio of 12.96, while CELH has a forward P/E of 53.97. We also note that BZLFY has a PEG ratio of 1.20. 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. CELH currently has a PEG ratio of 1.57.

Another notable valuation metric for BZLFY is its P/B ratio of 2.87. 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, CELH has a P/B of 25.79.

These are just a few of the metrics contributing to BZLFY's Value grade of A and CELH's Value grade of D.

BZLFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BZLFY is likely the superior value option right now.


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Bunzl PLC (BZLFY) - free report >>

Celsius Holdings Inc. (CELH) - free report >>

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