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

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Investors interested in Retail - Supermarkets stocks are likely familiar with Jeronimo Martins SGPS SA (JRONY - Free Report) and Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Jeronimo Martins SGPS SA and Wal-Mart de Mexico SAB de CV are holding a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

JRONY currently has a forward P/E ratio of 18.95, while WMMVY has a forward P/E of 24.17. We also note that JRONY has a PEG ratio of 1.32. 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 2.78.

Another notable valuation metric for JRONY is its P/B ratio of 5.76. 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 7.53.

Based on these metrics and many more, JRONY holds a Value grade of B, while WMMVY has a Value grade of D.

Both JRONY and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JRONY is the superior value option right now.


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Jeronimo Martins SGPS SA (JRONY) - free report >>

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