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JRONY vs. WMMVY: Which Stock Should Value Investors Buy 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 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.

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

Currently, both Jeronimo Martins SGPS SA and WalMart de Mexico SAB de CV are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.

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 19.29, while WMMVY has a forward P/E of 26.90. We also note that JRONY has a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMMVY currently has a PEG ratio of 3.17.

Another notable valuation metric for JRONY is its P/B ratio of 4.17. 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 6.98.

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

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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