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ABEV vs. SAM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV - Free Report) and Boston Beer (SAM - 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.
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.
Currently, Ambev has a Zacks Rank of #2 (Buy), while Boston Beer has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than SAM has recently. But this is just one piece of the puzzle for value investors.
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.
ABEV currently has a forward P/E ratio of 17.59, while SAM has a forward P/E of 21.11. We also note that ABEV has a PEG ratio of 2.40. 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 2.66.
Another notable valuation metric for ABEV is its P/B ratio of 3.13. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SAM has a P/B of 3.16.
These metrics, and several others, help ABEV earn a Value grade of B, while SAM has been given a Value grade of C.
ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than SAM, so it seems like value investors will conclude that ABEV is the superior option right now.
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ABEV vs. SAM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Ambev (ABEV - Free Report) and Boston Beer (SAM - 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.
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.
Currently, Ambev has a Zacks Rank of #2 (Buy), while Boston Beer has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ABEV likely has seen a stronger improvement to its earnings outlook than SAM has recently. But this is just one piece of the puzzle for value investors.
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.
ABEV currently has a forward P/E ratio of 17.59, while SAM has a forward P/E of 21.11. We also note that ABEV has a PEG ratio of 2.40. 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 2.66.
Another notable valuation metric for ABEV is its P/B ratio of 3.13. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SAM has a P/B of 3.16.
These metrics, and several others, help ABEV earn a Value grade of B, while SAM has been given a Value grade of C.
ABEV has seen stronger estimate revision activity and sports more attractive valuation metrics than SAM, so it seems like value investors will conclude that ABEV is the superior option right now.