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JSAIY or WMMVY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either J. Sainsbury PLC (JSAIY - Free Report) or 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.

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, J. Sainsbury PLC has a Zacks Rank of #2 (Buy), while WalMart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JSAIY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

JSAIY currently has a forward P/E ratio of 12.94, while WMMVY has a forward P/E of 28.16. We also note that JSAIY has a PEG ratio of 2.24. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WMMVY currently has a PEG ratio of 3.32.

Another notable valuation metric for JSAIY is its P/B ratio of 0.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WMMVY has a P/B of 7.40.

Based on these metrics and many more, JSAIY holds a Value grade of A, while WMMVY has a Value grade of C.

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


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

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