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GIS vs. K: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Food - Miscellaneous sector might want to consider either General Mills (GIS - Free Report) or Kellogg (K - 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 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.
Right now, General Mills is sporting a Zacks Rank of #2 (Buy), while Kellogg has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GIS likely has seen a stronger improvement to its earnings outlook than K has recently. But this is just one piece of the puzzle 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GIS currently has a forward P/E ratio of 16.31, while K has a forward P/E of 16.45. We also note that GIS has a PEG ratio of 2.33. 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. K currently has a PEG ratio of 4.29.
Another notable valuation metric for GIS is its P/B ratio of 4.35. 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, K has a P/B of 6.46.
Based on these metrics and many more, GIS holds a Value grade of B, while K has a Value grade of C.
GIS stands above K thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GIS is the superior value option right now.
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GIS vs. K: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Food - Miscellaneous sector might want to consider either General Mills (GIS - Free Report) or Kellogg (K - 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 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.
Right now, General Mills is sporting a Zacks Rank of #2 (Buy), while Kellogg has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GIS likely has seen a stronger improvement to its earnings outlook than K has recently. But this is just one piece of the puzzle 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GIS currently has a forward P/E ratio of 16.31, while K has a forward P/E of 16.45. We also note that GIS has a PEG ratio of 2.33. 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. K currently has a PEG ratio of 4.29.
Another notable valuation metric for GIS is its P/B ratio of 4.35. 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, K has a P/B of 6.46.
Based on these metrics and many more, GIS holds a Value grade of B, while K has a Value grade of C.
GIS stands above K thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GIS is the superior value option right now.