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

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Investors interested in Food - Miscellaneous stocks are likely familiar with Bunzl PLC (BZLFY - Free Report) and 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Bunzl PLC has a Zacks Rank of #2 (Buy), while Mondelez 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. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BZLFY currently has a forward P/E ratio of 13.54, while MDLZ has a forward P/E of 20.94. We also note that BZLFY has a PEG ratio of 1.25. 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 4.79.

Another notable valuation metric for BZLFY is its P/B ratio of 3. 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 3.13.

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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