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CCU vs. NAPA: Which Stock Is the Better Value Option?

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·2 min read
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  • CDLDY
  • NAPA
  • CCU

Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Cervecerias Unidas (CCU) 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Currently, both Cervecerias Unidas and The Duckhorn Portfolio, Inc. are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CCU currently has a forward P/E ratio of 14.44, while NAPA has a forward P/E of 35.57. We also note that CCU has a PEG ratio of 0.97. 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 3.77.

Another notable valuation metric for CCU is its P/B ratio of 1.55. 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, NAPA has a P/B of 2.84.

These are just a few of the metrics contributing to CCU's Value grade of A and NAPA's Value grade of D.

Both CCU and NAPA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CCU is the superior value option right now.


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Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report
 
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
 
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