KNBWY vs. NAPA: Which Stock Is the Better Value Option?
Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Kirin Holdings Co. (KNBWY) or The Duckhorn Portfolio, Inc. (NAPA). 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.
Currently, both Kirin Holdings Co. and The Duckhorn Portfolio, Inc. are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.
KNBWY currently has a forward P/E ratio of 12.90, while NAPA has a forward P/E of 24.70. We also note that KNBWY has a PEG ratio of 0.44. 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 KNBWY is its P/B ratio of 1.37. 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 1.98.
These metrics, and several others, help KNBWY earn a Value grade of A, while NAPA has been given a Value grade of D.
Both KNBWY and NAPA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KNBWY is the superior value option right now.
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Kirin Holdings Co. (KNBWY) : Free Stock Analysis Report
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
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