Yahoo Finance KOF or PRMW: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola FEMSA (KOF) or Primo Water (PRMW). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Coca-Cola FEMSA has a Zacks Rank of #1 (Strong Buy), while Primo Water has a Zacks Rank of #3 (Hold) right now. This means that KOF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
KOF currently has a forward P/E ratio of 16.59, while PRMW has a forward P/E of 40.69. We also note that KOF has a PEG ratio of 1.82. 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. PRMW currently has a PEG ratio of 3.39.
Another notable valuation metric for KOF is its P/B ratio of 1.97. 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, PRMW has a P/B of 5.93.
These are just a few of the metrics contributing to KOF's Value grade of B and PRMW's Value grade of D.
KOF 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 KOF is likely the superior value option right now.
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Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
Primo Water Corporation (PRMW) : Free Stock Analysis Report
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