CCEP or KO: Which Is the Better Value Stock Right Now?
Investors interested in Beverages - Soft drinks stocks are likely familiar with Coca-Cola European (CCEP) and Coca-Cola (KO). 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 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 Coca-Cola has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCEP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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 15.57, while KO has a forward P/E of 21.10. We also note that CCEP has a PEG ratio of 2.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KO currently has a PEG ratio of 3.32.
Another notable valuation metric for CCEP is its P/B ratio of 3.57. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KO has a P/B of 9.33.
These are just a few of the metrics contributing to CCEP's Value grade of B and KO's Value grade of D.
CCEP sticks out from KO in both our Zacks Rank and Style Scores models, so value investors will likely feel that CCEP is the better option right now.
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Coca-Cola Europacific Partners (CCEP) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
