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KRYAY vs. LW: Which Stock Is the Better Value Option?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Kerry Group PLC (KRYAY - Free Report) and Lamb Weston (LW - 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.

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 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.

Kerry Group PLC has a Zacks Rank of #2 (Buy), while Lamb Weston has a Zacks Rank of #5 (Strong Sell) right now. This means that KRYAY'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 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 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.

KRYAY currently has a forward P/E ratio of 14.48, while LW has a forward P/E of 14.83. We also note that KRYAY has a PEG ratio of 2.94. 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. LW currently has a PEG ratio of 6.10.

Another notable valuation metric for KRYAY is its P/B ratio of 2.13. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LW has a P/B of 3.27.

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

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


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