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KNBWY or SAM: Which Is the Better Value Stock Right Now?

Investors interested in Beverages - Alcohol stocks are likely familiar with Kirin Holdings Co. (KNBWY) and Boston Beer (SAM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Kirin Holdings Co. has a Zacks Rank of #2 (Buy), while Boston Beer has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KNBWY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

KNBWY currently has a forward P/E ratio of 12.27, while SAM has a forward P/E of 27.80. We also note that KNBWY has a PEG ratio of 0.73. 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. SAM currently has a PEG ratio of 1.07.

Another notable valuation metric for KNBWY is its P/B ratio of 1.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SAM has a P/B of 3.25.

Based on these metrics and many more, KNBWY holds a Value grade of B, while SAM has a Value grade of C.

KNBWY 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 KNBWY is likely the superior value option right now.

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Kirin Holdings Co. (KNBWY) : Free Stock Analysis Report

The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report

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Zacks Investment Research