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HEINY vs. SAM: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Heineken NV (HEINY - Free Report) or Boston Beer (SAM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Heineken NV has a Zacks Rank of #2 (Buy), while Boston Beer has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HEINY likely has seen a stronger improvement to its earnings outlook than SAM has recently. 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 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.
HEINY currently has a forward P/E ratio of 12.61, while SAM has a forward P/E of 22.73. We also note that HEINY has a PEG ratio of 1.39. 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. SAM currently has a PEG ratio of 2.50.
Another notable valuation metric for HEINY is its P/B ratio of 1.95. 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, SAM has a P/B of 2.84.
Based on these metrics and many more, HEINY holds a Value grade of B, while SAM has a Value grade of C.
HEINY 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 HEINY is likely the superior value option right now.
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HEINY vs. SAM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Heineken NV (HEINY - Free Report) or Boston Beer (SAM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Heineken NV has a Zacks Rank of #2 (Buy), while Boston Beer has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that HEINY likely has seen a stronger improvement to its earnings outlook than SAM has recently. 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 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.
HEINY currently has a forward P/E ratio of 12.61, while SAM has a forward P/E of 22.73. We also note that HEINY has a PEG ratio of 1.39. 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. SAM currently has a PEG ratio of 2.50.
Another notable valuation metric for HEINY is its P/B ratio of 1.95. 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, SAM has a P/B of 2.84.
Based on these metrics and many more, HEINY holds a Value grade of B, while SAM has a Value grade of C.
HEINY 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 HEINY is likely the superior value option right now.