ASBFY or UTZ: 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 Utz Brands (UTZ). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Associated British Foods PLC and Utz Brands are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ASBFY likely has seen a stronger improvement to its earnings outlook than UTZ has recently. But this is just one piece of the puzzle 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 15.35, while UTZ has a forward P/E of 30.55. We also note that ASBFY has a PEG ratio of 2.38. 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. UTZ currently has a PEG ratio of 2.94.
Another notable valuation metric for ASBFY is its P/B ratio of 1.28. 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, UTZ has a P/B of 1.61.
These metrics, and several others, help ASBFY earn a Value grade of B, while UTZ has been given a Value grade of C.
ASBFY stands above UTZ thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASBFY is the superior value option right now.
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Associated British Foods PLC (ASBFY) : Free Stock Analysis Report
Utz Brands, Inc. (UTZ) : Free Stock Analysis Report
