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JSAIY vs. WMMVY: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of J. Sainsbury PLC (JSAIY - Free Report) and WalMart 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

J. Sainsbury PLC and WalMart de Mexico SAB de CV are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JSAIY 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.

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.

JSAIY currently has a forward P/E ratio of 13.34, while WMMVY has a forward P/E of 28.85. We also note that JSAIY has a PEG ratio of 0.90. 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 3.40.

Another notable valuation metric for JSAIY is its P/B ratio of 1.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 7.49.

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

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


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

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