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JSAIY vs. WMMVY: Which Stock Is the Better Value Option?

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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.

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.

Right now, J. Sainsbury PLC is sporting a Zacks Rank of #2 (Buy), while WalMart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JSAIY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

JSAIY currently has a forward P/E ratio of 11.94, while WMMVY has a forward P/E of 25.84. We also note that JSAIY has a PEG ratio of 0.76. 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 3.04.

Another notable valuation metric for JSAIY is its P/B ratio of 0.98. 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 7.23.

These are just a few of the metrics contributing to JSAIY's Value grade of A and WMMVY's 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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