ASBFY or MHGVY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Food - Miscellaneous sector might want to consider either Associated British Foods PLC (ASBFY) or Marine Harvest ASA (MHGVY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Associated British Foods PLC has a Zacks Rank of #1 (Strong Buy), while Marine Harvest ASA has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than MHGVY has recently. But this is only part of the picture for value investors.
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.
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.
ASBFY currently has a forward P/E ratio of 11.07, while MHGVY has a forward P/E of 11.11. We also note that ASBFY has a PEG ratio of 1.47. 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. MHGVY currently has a PEG ratio of 2.73.
Another notable valuation metric for ASBFY is its P/B ratio of 1.35. 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, MHGVY has a P/B of 2.16.
These metrics, and several others, help ASBFY earn a Value grade of A, while MHGVY has been given a Value grade of C.
ASBFY sticks out from MHGVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASBFY is the better option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Associated British Foods PLC (ASBFY) : Free Stock Analysis Report
Marine Harvest ASA (MHGVY) : Free Stock Analysis Report
