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KVUE or LRLCY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Kenvue (KVUE - Free Report) and L'Oreal SA (LRLCY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Kenvue has a Zacks Rank of #2 (Buy), while L'Oreal SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KVUE likely has seen a stronger improvement to its earnings outlook than LRLCY has recently. But this is just one factor that value investors are interested in.

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.

KVUE currently has a forward P/E ratio of 15.12, while LRLCY has a forward P/E of 26.10. We also note that KVUE has a PEG ratio of 1.33. 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. LRLCY currently has a PEG ratio of 2.95.

Another notable valuation metric for KVUE is its P/B ratio of 3.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LRLCY has a P/B of 5.65.

These metrics, and several others, help KVUE earn a Value grade of B, while LRLCY has been given a Value grade of D.

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

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