Yahoo Finance AGRO or CTVA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Agriculture - Operations sector might want to consider either Adecoagro (AGRO) or Corteva, Inc. (CTVA). But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Adecoagro has a Zacks Rank of #2 (Buy), while Corteva, 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 AGRO is likely seeing its earnings outlook improve to a greater extent. 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.
AGRO currently has a forward P/E ratio of 5.40, while CTVA has a forward P/E of 19.49. We also note that AGRO has a PEG ratio of 1.41. 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. CTVA currently has a PEG ratio of 1.45.
Another notable valuation metric for AGRO is its P/B ratio of 0.68. 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, CTVA has a P/B of 1.53.
These metrics, and several others, help AGRO earn a Value grade of A, while CTVA has been given a Value grade of C.
AGRO 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 AGRO is likely the superior value option right now.
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Adecoagro S.A. (AGRO) : Free Stock Analysis Report
Corteva, Inc. (CTVA) : Free Stock Analysis Report
