CCEP or BROS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Beverages - Soft drinks sector have probably already heard of Coca-Cola European (CCEP) and Dutch Bros (BROS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Coca-Cola European is sporting a Zacks Rank of #2 (Buy), while Dutch Bros has a Zacks Rank of #3 (Hold). This means that CCEP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
CCEP currently has a forward P/E ratio of 15.88, while BROS has a forward P/E of 129.42. We also note that CCEP has a PEG ratio of 2.20. 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. BROS currently has a PEG ratio of 4.47.
Another notable valuation metric for CCEP is its P/B ratio of 3.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BROS has a P/B of 4.28.
These are just a few of the metrics contributing to CCEP's Value grade of A and BROS's Value grade of C.
CCEP has seen stronger estimate revision activity and sports more attractive valuation metrics than BROS, so it seems like value investors will conclude that CCEP is the superior option right now.
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Coca-Cola Europacific Partners (CCEP) : Free Stock Analysis Report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
