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DANOY vs. CELH: Which Stock Is the Better Value Option?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both Danone (DANOY - Free Report) and Celsius Holdings Inc. (CELH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Danone and Celsius Holdings Inc. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that DANOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

DANOY currently has a forward P/E ratio of 16.96, while CELH has a forward P/E of 24.03. We also note that DANOY has a PEG ratio of 2.59. 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. CELH currently has a PEG ratio of 2.95.

Another notable valuation metric for DANOY is its P/B ratio of 2.54. 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, CELH has a P/B of 7.53.

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

DANOY has seen stronger estimate revision activity and sports more attractive valuation metrics than CELH, so it seems like value investors will conclude that DANOY is the superior option right now.

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