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ADRNY or OLLI: Which Is the Better Value Stock Right Now?

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Investors interested in Consumer Products - Staples stocks are likely familiar with Ahold NV (ADRNY - Free Report) and Ollie's Bargain Outlet (OLLI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.

Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Ollie's Bargain Outlet has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ADRNY has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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.

ADRNY currently has a forward P/E ratio of 13.58, while OLLI has a forward P/E of 23.39. We also note that ADRNY has a PEG ratio of 3.89. 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. OLLI currently has a PEG ratio of 5.64.

Another notable valuation metric for ADRNY is its P/B ratio of 2.27. 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, OLLI has a P/B of 2.90.

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

ADRNY stands above OLLI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADRNY is the superior value option right now.


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Ollie's Bargain Outlet Holdings, Inc. (OLLI) - free report >>

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