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

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Bunzl PLC (BZLFY - Free Report) and Mondelez (MDLZ - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Bunzl PLC is sporting a Zacks Rank of #2 (Buy), while Mondelez has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BZLFY is likely seeing its earnings outlook improve to a greater extent. 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.

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.

BZLFY currently has a forward P/E ratio of 12.78, while MDLZ has a forward P/E of 20.59. We also note that BZLFY has a PEG ratio of 1.18. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MDLZ currently has a PEG ratio of 4.72.

Another notable valuation metric for BZLFY is its P/B ratio of 2.83. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MDLZ has a P/B of 3.08.

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

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


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

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