Yahoo Finance AGRO vs. LMNR: Which Stock Is the Better Value Option?
Investors with an interest in Agriculture - Operations stocks have likely encountered both Adecoagro (AGRO) and Limoneira (LMNR). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Adecoagro has a Zacks Rank of #1 (Strong Buy), while Limoneira has a Zacks Rank of #3 (Hold) right now. This means that AGRO'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 analyze a variety of traditional, tried-and-true metrics to help find companies 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.
AGRO currently has a forward P/E ratio of 5.58, while LMNR has a forward P/E of 92.27. We also note that AGRO has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LMNR currently has a PEG ratio of 6.15.
Another notable valuation metric for AGRO is its P/B ratio of 0.71. 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, LMNR has a P/B of 1.93.
Based on these metrics and many more, AGRO holds a Value grade of A, while LMNR has a Value grade of D.
AGRO sticks out from LMNR in both our Zacks Rank and Style Scores models, so value investors will likely feel that AGRO is the better option right now.
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Adecoagro S.A. (AGRO): Free Stock Analysis Report
Limoneira Co (LMNR): Free Stock Analysis Report
