DOLE vs. CTVA: Which Stock Is the Better Value Option?

Investors looking for stocks in the Agriculture - Operations sector might want to consider either Dole (DOLE) or Corteva, Inc. (CTVA). 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.

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, Dole is sporting a Zacks Rank of #2 (Buy), while Corteva, Inc. has a Zacks Rank of #3 (Hold). This means that DOLE'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 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

DOLE currently has a forward P/E ratio of 9.24, while CTVA has a forward P/E of 20.28. We also note that DOLE has a PEG ratio of 1.36. 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. CTVA currently has a PEG ratio of 2.32.

Another notable valuation metric for DOLE is its P/B ratio of 0.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CTVA has a P/B of 1.98.

These metrics, and several others, help DOLE earn a Value grade of A, while CTVA has been given a Value grade of D.

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

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

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