Yahoo Finance BRFS or CELH: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Food - Miscellaneous sector might want to consider either BRF (BRFS) or Celsius Holdings Inc. (CELH). 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, BRF has a Zacks Rank of #1 (Strong Buy), while Celsius Holdings Inc. has a Zacks Rank of #3 (Hold). This means that BRFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
BRFS currently has a forward P/E ratio of 12.61, while CELH has a forward P/E of 52.14. We also note that BRFS has a PEG ratio of 0.34. 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. CELH currently has a PEG ratio of 1.61.
Another notable valuation metric for BRFS is its P/B ratio of 1.37. 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, CELH has a P/B of 37.94.
Based on these metrics and many more, BRFS holds a Value grade of A, while CELH has a Value grade of D.
BRFS stands above CELH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BRFS is the superior value option right now.
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BRF S.A. (BRFS) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
