CCEP vs. BROS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola European (CCEP) or Dutch Bros (BROS). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CCEP currently has a forward P/E ratio of 15.66, while BROS has a forward P/E of 149.02. We also note that CCEP has a PEG ratio of 2.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BROS currently has a PEG ratio of 3.74.
Another notable valuation metric for CCEP is its P/B ratio of 3.36. 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, BROS has a P/B of 4.86.
Based on these metrics and many more, CCEP holds a Value grade of B, while BROS has a Value grade of C.
CCEP sticks out from BROS 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
Dutch Bros Inc. (BROS) : Free Stock Analysis Report
