Yahoo Finance CCEP vs. MNST: Which Stock Is the Better Value Option?
Investors with an interest in Beverages - Soft drinks stocks have likely encountered both Coca-Cola European (CCEP) and Monster Beverage (MNST). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Coca-Cola European has a Zacks Rank of #2 (Buy), while Monster Beverage has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CCEP likely has seen a stronger improvement to its earnings outlook than MNST has recently. But this is just one factor that value investors are interested in.
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 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.
CCEP currently has a forward P/E ratio of 15.66, while MNST has a forward P/E of 44.91. We also note that CCEP has a PEG ratio of 1.32. 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. MNST currently has a PEG ratio of 3.95.
Another notable valuation metric for CCEP is its P/B ratio of 2.94. 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, MNST has a P/B of 7.90.
These metrics, and several others, help CCEP earn a Value grade of A, while MNST has been given a Value grade of D.
CCEP stands above MNST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCEP is the superior value option right now.
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CocaCola Europacific Partners (CCEP) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
