We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TAP vs. BF.B: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Beverages - Alcohol stocks are likely familiar with Molson Coors Brewing (TAP - Free Report) and Brown-Forman Corporation (BF.B - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Molson Coors Brewing has a Zacks Rank of #2 (Buy), while Brown-Forman Corporation has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TAP likely has seen a stronger improvement to its earnings outlook than BF.B has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
TAP currently has a forward P/E ratio of 9.98, while BF.B has a forward P/E of 31.72. We also note that TAP has a PEG ratio of 1.66. 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. BF.B currently has a PEG ratio of 4.23.
Another notable valuation metric for TAP is its P/B ratio of 0.61. 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, BF.B has a P/B of 13.47.
These metrics, and several others, help TAP earn a Value grade of A, while BF.B has been given a Value grade of D.
TAP sticks out from BF.B in both our Zacks Rank and Style Scores models, so value investors will likely feel that TAP is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TAP vs. BF.B: Which Stock Is the Better Value Option?
Investors interested in Beverages - Alcohol stocks are likely familiar with Molson Coors Brewing (TAP - Free Report) and Brown-Forman Corporation (BF.B - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Molson Coors Brewing has a Zacks Rank of #2 (Buy), while Brown-Forman Corporation has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TAP likely has seen a stronger improvement to its earnings outlook than BF.B has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
TAP currently has a forward P/E ratio of 9.98, while BF.B has a forward P/E of 31.72. We also note that TAP has a PEG ratio of 1.66. 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. BF.B currently has a PEG ratio of 4.23.
Another notable valuation metric for TAP is its P/B ratio of 0.61. 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, BF.B has a P/B of 13.47.
These metrics, and several others, help TAP earn a Value grade of A, while BF.B has been given a Value grade of D.
TAP sticks out from BF.B in both our Zacks Rank and Style Scores models, so value investors will likely feel that TAP is the better option right now.