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GNCGY vs. CPB: Which Stock Is the Better Value Option?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both GREENCORE GRP (GNCGY - Free Report) and Campbell Soup (CPB - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

GREENCORE GRP and Campbell Soup 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 GNCGY is likely seeing its earnings outlook improve to a greater extent. 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.

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.

GNCGY currently has a forward P/E ratio of 12.77, while CPB has a forward P/E of 18.73. We also note that GNCGY has a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CPB currently has a PEG ratio of 3.15.

Another notable valuation metric for GNCGY is its P/B ratio of 6.31. 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, CPB has a P/B of 12.77.

Based on these metrics and many more, GNCGY holds a Value grade of A, while CPB has a Value grade of C.

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


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