Group 1 - Grocery Outlet Holding Corp. (GO) has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Church & Dwight (CHD), which has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various valuation metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share, to assess whether a company is undervalued [4] - GO has a forward P/E ratio of 22.87, while CHD has a forward P/E of 27.22, suggesting that GO may be a more attractive investment based on this metric [5] Group 2 - GO's PEG ratio is 3.15, compared to CHD's PEG ratio of 3.90, indicating that GO may offer better value when considering expected earnings growth [5] - GO has a P/B ratio of 1.47, significantly lower than CHD's P/B of 5.24, further supporting the argument that GO is undervalued [6] - Based on the valuation metrics and improving earnings outlook, GO is considered the superior value option at this time [7]
GO vs. CHD: Which Stock Should Value Investors Buy Now?