UTZ or CELH: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Utz Brands (UTZ) and Celsius Holdings Inc. (CELH). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Utz Brands and Celsius Holdings Inc. have a Zacks Rank of # 2 (Buy) right now. 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. 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.

UTZ currently has a forward P/E ratio of 25.69, while CELH has a forward P/E of 63.11. We also note that UTZ has a PEG ratio of 1.56. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CELH currently has a PEG ratio of 2.01.

Another notable valuation metric for UTZ is its P/B ratio of 1.77. 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, CELH has a P/B of 60.40.

These are just a few of the metrics contributing to UTZ's Value grade of B and CELH's Value grade of D.

Both UTZ and CELH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that UTZ is the superior value option right now.

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Utz Brands, Inc. (UTZ) : Free Stock Analysis Report

Celsius Holdings Inc. (CELH) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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