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CCU or NAPA: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Cervecerias Unidas (CCU) or The Duckhorn Portfolio, Inc. (NAPA). But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Cervecerias Unidas has a Zacks Rank of #2 (Buy), while The Duckhorn Portfolio, Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CCU is likely seeing its earnings outlook improve to a greater extent. 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.

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.

CCU currently has a forward P/E ratio of 17.06, while NAPA has a forward P/E of 44.92. We also note that CCU has a PEG ratio of 1.15. 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. NAPA currently has a PEG ratio of 4.29.

Another notable valuation metric for CCU is its P/B ratio of 1.83. 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, NAPA has a P/B of 3.19.

These metrics, and several others, help CCU earn a Value grade of B, while NAPA has been given a Value grade of D.

CCU has seen stronger estimate revision activity and sports more attractive valuation metrics than NAPA, so it seems like value investors will conclude that CCU is the superior option right now.


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Compania Cervecerias Unidas, S.A. (CCU) : Free Stock Analysis Report
 
The Duckhorn Portfolio, Inc. (NAPA) : Free Stock Analysis Report
 
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