DOLE vs. CTVA: Which Stock Should Value Investors Buy Now?
DOLE vs. CTVA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Agriculture - Operations sector have probably already heard of Dole (DOLE) and Corteva, Inc. (CTVA). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Dole and Corteva, Inc. are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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 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.
DOLE currently has a forward P/E ratio of 9.79, while CTVA has a forward P/E of 21.53. We also note that DOLE has a PEG ratio of 0.83. 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. CTVA currently has a PEG ratio of 1.38.
Another notable valuation metric for DOLE is its P/B ratio of 0.99. 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, CTVA has a P/B of 1.34.
These metrics, and several others, help DOLE earn a Value grade of A, while CTVA has been given a Value grade of C.
Both DOLE and CTVA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DOLE is the superior value option right now.
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Dole PLC (DOLE): Free Stock Analysis Report
Corteva, Inc. (CTVA): Free Stock Analysis Report
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