CABGY vs. NAPA: Which Stock Is the Better Value Option?
Investors with an interest in Beverages - Alcohol stocks have likely encountered both Carlsberg AS (CABGY) and The Duckhorn Portfolio, Inc. (NAPA). 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.
Carlsberg AS has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CABGY has an improving earnings outlook. 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.
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.
CABGY currently has a forward P/E ratio of 18.23, while NAPA has a forward P/E of 25.38. We also note that CABGY has a PEG ratio of 2. 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. NAPA currently has a PEG ratio of 2.24.
Another notable valuation metric for CABGY is its P/B ratio of 2.40. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NAPA has a P/B of 2.48.
These are just a few of the metrics contributing to CABGY's Value grade of B and NAPA's Value grade of C.
CABGY stands above NAPA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CABGY is the superior value option right now.
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