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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.
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.
Ahold NV has a Zacks Rank of #1 (Strong Buy), while Kimberly-Clark has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than KMB has recently. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ADRNY currently has a forward P/E ratio of 11.88, while KMB has a forward P/E of 21.84. We also note that ADRNY has a PEG ratio of 1.64. 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 2.21.
Another notable valuation metric for ADRNY is its P/B ratio of 1.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KMB has a P/B of 62.31.
These are just a few of the metrics contributing to ADRNY's Value grade of A and KMB's Value grade of D.
ADRNY has seen stronger estimate revision activity and sports more attractive valuation metrics than KMB, so it seems like value investors will conclude that ADRNY is the superior 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.
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.
Ahold NV has a Zacks Rank of #1 (Strong Buy), while Kimberly-Clark has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than KMB has recently. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ADRNY currently has a forward P/E ratio of 11.88, while KMB has a forward P/E of 21.84. We also note that ADRNY has a PEG ratio of 1.64. 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 2.21.
Another notable valuation metric for ADRNY is its P/B ratio of 1.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KMB has a P/B of 62.31.
These are just a few of the metrics contributing to ADRNY's Value grade of A and KMB's Value grade of D.
ADRNY has seen stronger estimate revision activity and sports more attractive valuation metrics than KMB, so it seems like value investors will conclude that ADRNY is the superior option right now.