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ADRNY or KMB: Which Is the Better Value Stock Right 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 Kimberly-Clark (KMB - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Both Ahold NV and Kimberly-Clark have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 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 11.84, while KMB has a forward P/E of 21.27. We also note that ADRNY has a PEG ratio of 1.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMB currently has a PEG ratio of 3.33.
Another notable valuation metric for ADRNY is its P/B ratio of 1.77. 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, KMB has a P/B of 79.37.
These metrics, and several others, help ADRNY earn a Value grade of A, while KMB has been given a Value grade of C.
Both ADRNY and KMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ADRNY is the superior value option right now.
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ADRNY or KMB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Ahold NV (ADRNY - Free Report) or Kimberly-Clark (KMB - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Both Ahold NV and Kimberly-Clark have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 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 11.84, while KMB has a forward P/E of 21.27. We also note that ADRNY has a PEG ratio of 1.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMB currently has a PEG ratio of 3.33.
Another notable valuation metric for ADRNY is its P/B ratio of 1.77. 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, KMB has a P/B of 79.37.
These metrics, and several others, help ADRNY earn a Value grade of A, while KMB has been given a Value grade of C.
Both ADRNY and KMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ADRNY is the superior value option right now.