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GO vs. CHD: Which Stock Should Value Investors Buy Now?
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Investors interested in Consumer Products - Staples stocks are likely familiar with Grocery Outlet Holding Corp. (GO - Free Report) and Church & Dwight (CHD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, Grocery Outlet Holding Corp. is sporting a Zacks Rank of #2 (Buy), while Church & Dwight has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
GO currently has a forward P/E ratio of 22.87, while CHD has a forward P/E of 27.22. We also note that GO has a PEG ratio of 3.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHD currently has a PEG ratio of 3.90.
Another notable valuation metric for GO is its P/B ratio of 1.47. 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, CHD has a P/B of 5.24.
Based on these metrics and many more, GO holds a Value grade of B, while CHD has a Value grade of D.
GO 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 GO is likely the superior value option right now.
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GO vs. CHD: Which Stock Should Value Investors Buy Now?
Investors interested in Consumer Products - Staples stocks are likely familiar with Grocery Outlet Holding Corp. (GO - Free Report) and Church & Dwight (CHD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, Grocery Outlet Holding Corp. is sporting a Zacks Rank of #2 (Buy), while Church & Dwight has a Zacks Rank of #3 (Hold). This means that GO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
GO currently has a forward P/E ratio of 22.87, while CHD has a forward P/E of 27.22. We also note that GO has a PEG ratio of 3.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHD currently has a PEG ratio of 3.90.
Another notable valuation metric for GO is its P/B ratio of 1.47. 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, CHD has a P/B of 5.24.
Based on these metrics and many more, GO holds a Value grade of B, while CHD has a Value grade of D.
GO 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 GO is likely the superior value option right now.