Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of HF FOODS GROUP INC. (HFFG) and Kerry Group PLC (KRYAY). 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.
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.
HF FOODS GROUP INC. and Kerry Group PLC are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HFFG has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
HFFG currently has a forward P/E ratio of 5.20, while KRYAY has a forward P/E of 16.55. We also note that HFFG has a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KRYAY currently has a PEG ratio of 3.02.
Another notable valuation metric for HFFG is its P/B ratio of 0.48. 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, KRYAY has a P/B of 2.29.
These are just a few of the metrics contributing to HFFG's Value grade of A and KRYAY's Value grade of C.
HFFG 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 HFFG is likely the superior value option right now.
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See Stocks Now >>HF FOODS GROUP INC. (HFFG) : Free Stock Analysis Report
Kerry Group PLC (KRYAY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
