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KDP or MNST: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Keurig Dr Pepper, Inc (KDP - Free Report) or Monster Beverage (MNST - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, Keurig Dr Pepper, Inc has a Zacks Rank of #2 (Buy), while Monster Beverage 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 KDP is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
KDP currently has a forward P/E ratio of 12.14, while MNST has a forward P/E of 33.77. We also note that KDP has a PEG ratio of 1.43. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MNST currently has a PEG ratio of 2.51.
Another notable valuation metric for KDP is its P/B ratio of 1.47. 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, MNST has a P/B of 9.18.
Based on these metrics and many more, KDP holds a Value grade of B, while MNST has a Value grade of F.
KDP stands above MNST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KDP is the superior value option right now.
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KDP or MNST: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Keurig Dr Pepper, Inc (KDP - Free Report) or Monster Beverage (MNST - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, Keurig Dr Pepper, Inc has a Zacks Rank of #2 (Buy), while Monster Beverage 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 KDP is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
KDP currently has a forward P/E ratio of 12.14, while MNST has a forward P/E of 33.77. We also note that KDP has a PEG ratio of 1.43. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MNST currently has a PEG ratio of 2.51.
Another notable valuation metric for KDP is its P/B ratio of 1.47. 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, MNST has a P/B of 9.18.
Based on these metrics and many more, KDP holds a Value grade of B, while MNST has a Value grade of F.
KDP stands above MNST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KDP is the superior value option right now.