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ADRNY vs. GO: Which Stock Is the Better Value Option?
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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Currently, Ahold NV has a Zacks Rank of #1 (Strong Buy), while Grocery Outlet Holding Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ADRNY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 13.03, while GO has a forward P/E of 30.57. We also note that ADRNY has a PEG ratio of 2.75. 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. GO currently has a PEG ratio of 2.99.
Another notable valuation metric for ADRNY is its P/B ratio of 2.15. 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, GO has a P/B of 2.60.
These metrics, and several others, help ADRNY earn a Value grade of B, while GO has been given a Value grade of C.
ADRNY has seen stronger estimate revision activity and sports more attractive valuation metrics than GO, so it seems like value investors will conclude that ADRNY is the superior option right now.
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ADRNY vs. GO: Which Stock Is the Better Value Option?
Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY - Free Report) and Grocery Outlet Holding Corp. (GO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.
Currently, Ahold NV has a Zacks Rank of #1 (Strong Buy), while Grocery Outlet Holding Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ADRNY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 13.03, while GO has a forward P/E of 30.57. We also note that ADRNY has a PEG ratio of 2.75. 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. GO currently has a PEG ratio of 2.99.
Another notable valuation metric for ADRNY is its P/B ratio of 2.15. 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, GO has a P/B of 2.60.
These metrics, and several others, help ADRNY earn a Value grade of B, while GO has been given a Value grade of C.
ADRNY has seen stronger estimate revision activity and sports more attractive valuation metrics than GO, so it seems like value investors will conclude that ADRNY is the superior option right now.