Advertisement
New Zealand markets open in 9 hours 34 minutes
  • NZX 50

    12,329.44
    +37.41 (+0.30%)
     
  • NZD/USD

    0.6073
    -0.0010 (-0.17%)
     
  • ALL ORDS

    8,272.70
    -30.80 (-0.37%)
     
  • OIL

    82.80
    -0.05 (-0.06%)
     
  • GOLD

    2,470.10
    +10.20 (+0.41%)
     

CCEP or BROS: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Beverages - Soft drinks sector might want to consider either Coca-Cola European (CCEP) or Dutch Bros (BROS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Coca-Cola European has a Zacks Rank of #2 (Buy), while Dutch Bros has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCEP has an improving earnings outlook. But this is just one piece of the puzzle 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.

ADVERTISEMENT

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CCEP currently has a forward P/E ratio of 16.67, while BROS has a forward P/E of 157.06. We also note that CCEP has a PEG ratio of 2.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BROS currently has a PEG ratio of 2.92.

Another notable valuation metric for CCEP is its P/B ratio of 3.75. 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, BROS has a P/B of 5.63.

Based on these metrics and many more, CCEP holds a Value grade of B, while BROS has a Value grade of D.

CCEP stands above BROS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCEP is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Coca-Cola Europacific Partners (CCEP) : Free Stock Analysis Report

Dutch Bros Inc. (BROS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research