Yahoo Finance BRFS vs. MHGVY: Which Stock Should Value Investors Buy Now?
Investors interested in Food - Miscellaneous stocks are likely familiar with BRF (BRFS) and Marine Harvest ASA (MHGVY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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.
BRF has a Zacks Rank of #1 (Strong Buy), while Marine Harvest ASA has a Zacks Rank of #5 (Strong Sell) right now. This means that BRFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
BRFS currently has a forward P/E ratio of 13.24, while MHGVY has a forward P/E of 15.50. We also note that BRFS has a PEG ratio of 0.37. 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. MHGVY currently has a PEG ratio of 1.85.
Another notable valuation metric for BRFS is its P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MHGVY has a P/B of 2.53.
These are just a few of the metrics contributing to BRFS's Value grade of A and MHGVY's Value grade of D.
BRFS 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 BRFS is likely the superior value option right now.
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BRF S.A. (BRFS) : Free Stock Analysis Report
Marine Harvest ASA (MHGVY) : Free Stock Analysis Report
