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ADRNY vs. WDFC: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Ahold NV (ADRNY - Free Report) or WD-40 (WDFC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Ahold NV has a Zacks Rank of #1 (Strong Buy), while WD-40 has a Zacks Rank of #3 (Hold) right now. This means that ADRNY'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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

ADRNY currently has a forward P/E ratio of 13.32, while WDFC has a forward P/E of 38.69. We also note that ADRNY has a PEG ratio of 1.88. 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. WDFC currently has a PEG ratio of 3.87.

Another notable valuation metric for ADRNY is its P/B ratio of 1.85. 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, WDFC has a P/B of 16.05.

Based on these metrics and many more, ADRNY holds a Value grade of A, while WDFC has a Value grade of F.

ADRNY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ADRNY is likely the superior value option right now.


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