CCEP vs. MNST: Which Stock Is the Better Value Option?
Investors interested in stocks from the Beverages - Soft drinks sector have probably already heard of Coca-Cola European (CCEP) and Monster Beverage (MNST). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Coca-Cola European has a Zacks Rank of #1 (Strong Buy), while Monster Beverage has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that CCEP likely has seen a stronger improvement to its earnings outlook than MNST has recently. 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.
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.
CCEP currently has a forward P/E ratio of 15.25, while MNST has a forward P/E of 34.14. We also note that CCEP has a PEG ratio of 1.29. 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. MNST currently has a PEG ratio of 3.
Another notable valuation metric for CCEP is its P/B ratio of 3.13. 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, MNST has a P/B of 7.92.
These metrics, and several others, help CCEP earn a Value grade of B, while MNST has been given a Value grade of D.
CCEP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CCEP is likely the superior value option right now.
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CocaCola Europacific Partners (CCEP) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
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