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

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both Jeronimo Martins SGPS SA (JRONY - Free Report) and Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) . 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Jeronimo Martins SGPS SA has a Zacks Rank of #1 (Strong Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JRONY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JRONY currently has a forward P/E ratio of 17.56, while WMMVY has a forward P/E of 23.17. We also note that JRONY has a PEG ratio of 1.22. 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 2.67.

Another notable valuation metric for JRONY is its P/B ratio of 5.43. 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, WMMVY has a P/B of 7.22.

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

JRONY sticks out from WMMVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that JRONY is the better option right now.


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

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