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KDP or MNST: Which Is the Better Value Stock Right Now?

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Investors interested in Beverages - Soft drinks stocks are likely familiar with Keurig Dr Pepper, Inc (KDP - Free Report) and Monster Beverage (MNST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Keurig Dr Pepper, Inc and Monster Beverage are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 factor that value investors are interested in.

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 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.

KDP currently has a forward P/E ratio of 11.65, while MNST has a forward P/E of 33.77. We also note that KDP has a PEG ratio of 1.34. 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. MNST currently has a PEG ratio of 2.70.

Another notable valuation metric for KDP is its P/B ratio of 1.41. 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 9.14.

Based on these metrics and many more, KDP holds a Value grade of B, while MNST has a Value grade of F.

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

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