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ADRNY or KMB: Which Is the Better Value Stock Right Now?
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Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY - Free Report) and Kimberly-Clark (KMB - 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.
Ahold NV has a Zacks Rank of #2 (Buy), while Kimberly-Clark has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than KMB 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADRNY currently has a forward P/E ratio of 10.11, while KMB has a forward P/E of 17.74. We also note that ADRNY has a PEG ratio of 3.43. 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. KMB currently has a PEG ratio of 3.81.
Another notable valuation metric for ADRNY is its P/B ratio of 1.61. 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 38.34.
These are just a few of the metrics contributing to ADRNY's Value grade of A and KMB's Value grade of C.
ADRNY stands above KMB 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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ADRNY or KMB: Which Is the Better Value Stock Right Now?
Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY - Free Report) and Kimberly-Clark (KMB - 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.
Ahold NV has a Zacks Rank of #2 (Buy), while Kimberly-Clark has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than KMB 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ADRNY currently has a forward P/E ratio of 10.11, while KMB has a forward P/E of 17.74. We also note that ADRNY has a PEG ratio of 3.43. 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. KMB currently has a PEG ratio of 3.81.
Another notable valuation metric for ADRNY is its P/B ratio of 1.61. 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 38.34.
These are just a few of the metrics contributing to ADRNY's Value grade of A and KMB's Value grade of C.
ADRNY stands above KMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADRNY is the superior value option right now.