Investors with an interest in Food - Miscellaneous stocks have likely encountered both BRF (BRFS) and Kerry Group PLC (KRYAY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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

Currently, BRF has a Zacks Rank of #2 (Buy), while Kerry Group PLC has a Zacks Rank of #3 (Hold). 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 tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

BRFS currently has a forward P/E ratio of 10.37, while KRYAY has a forward P/E of 20.06. We also note that BRFS has a PEG ratio of 0.25. 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. KRYAY currently has a PEG ratio of 1.76.

Another notable valuation metric for BRFS is its P/B ratio of 1.28. 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, KRYAY has a P/B of 2.53.

These are just a few of the metrics contributing to BRFS's Value grade of A and KRYAY's Value grade of C.

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

Kerry Group PLC (KRYAY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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