Yahoo Finance GIS or NSRGY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Food - Miscellaneous sector might want to consider either General Mills (GIS) or Nestle SA (NSRGY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
General Mills has a Zacks Rank of #2 (Buy), while Nestle SA has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that GIS likely has seen a stronger improvement to its earnings outlook than NSRGY has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
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.
GIS currently has a forward P/E ratio of 15.89, while NSRGY has a forward P/E of 18.21. We also note that GIS has a PEG ratio of 2.47. 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. NSRGY currently has a PEG ratio of 2.92.
Another notable valuation metric for GIS is its P/B ratio of 4.20. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NSRGY has a P/B of 6.79.
These metrics, and several others, help GIS earn a Value grade of B, while NSRGY has been given a Value grade of C.
GIS stands above NSRGY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GIS is the superior value option right now.
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General Mills, Inc. (GIS) : Free Stock Analysis Report
Nestle SA (NSRGY) : Free Stock Analysis Report
