SUZ or KLBAY: Which Is the Better Value Stock Right Now?
Investors interested in Paper and Related Products stocks are likely familiar with Suzano S.A. Sponsored ADR (SUZ) and Klabin SA (KLBAY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Suzano S.A. Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while Klabin SA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SUZ is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
SUZ currently has a forward P/E ratio of 4.04, while KLBAY has a forward P/E of 9.46. We also note that SUZ has a PEG ratio of 0.58. 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. KLBAY currently has a PEG ratio of 1.78.
Another notable valuation metric for SUZ is its P/B ratio of 1.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KLBAY has a P/B of 2.76.
Based on these metrics and many more, SUZ holds a Value grade of A, while KLBAY has a Value grade of C.
SUZ sticks out from KLBAY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SUZ is the better option right now.
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Suzano S.A. Sponsored ADR (SUZ) : Free Stock Analysis Report
Klabin SA (KLBAY) : Free Stock Analysis Report
