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JSAIY vs. WMMVY: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both J. Sainsbury PLC (JSAIY - Free Report) and WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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

Right now, J. Sainsbury PLC is sporting a Zacks Rank of #2 (Buy), while WalMart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). This means that JSAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.

JSAIY currently has a forward P/E ratio of 12.43, while WMMVY has a forward P/E of 27.75. We also note that JSAIY has a PEG ratio of 2.15. 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. WMMVY currently has a PEG ratio of 3.27.

Another notable valuation metric for JSAIY is its P/B ratio of 0.80. 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, WMMVY has a P/B of 7.29.

These metrics, and several others, help JSAIY earn a Value grade of A, while WMMVY has been given a Value grade of C.

JSAIY has seen stronger estimate revision activity and sports more attractive valuation metrics than WMMVY, so it seems like value investors will conclude that JSAIY is the superior option right now.


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J. Sainsbury PLC (JSAIY) - free report >>

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