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DANOY or SYY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Danone (DANOY) and Sysco (SYY). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Danone has a Zacks Rank of #2 (Buy), while Sysco 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 DANOY has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DANOY currently has a forward P/E ratio of 18.08, while SYY has a forward P/E of 58.79. We also note that DANOY has a PEG ratio of 3.72. 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. SYY currently has a PEG ratio of 6.53.

Another notable valuation metric for DANOY is its P/B ratio of 2.52. 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, SYY has a P/B of 28.27.

These are just a few of the metrics contributing to DANOY's Value grade of B and SYY's Value grade of C.

DANOY sticks out from SYY in both our Zacks Rank and Style Scores models, so value investors will likely feel that DANOY is the better option right now.


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Danone (DANOY) : Free Stock Analysis Report
 
Sysco Corporation (SYY) : Free Stock Analysis Report
 
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