Back to top

Image: Bigstock

ASAI vs. VZIO: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Sendas Distribuidora S.A. Sponsored ADR (ASAI - Free Report) and VIZIO Holding Corp. (VZIO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Sendas Distribuidora S.A. Sponsored ADR and VIZIO Holding Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASAI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

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.

ASAI currently has a forward P/E ratio of 13.85, while VZIO has a forward P/E of 50.65. We also note that ASAI has a PEG ratio of 0.66. 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. VZIO currently has a PEG ratio of 2.03.

Another notable valuation metric for ASAI is its P/B ratio of 4.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VZIO has a P/B of 4.56.

Based on these metrics and many more, ASAI holds a Value grade of A, while VZIO has a Value grade of D.

ASAI has seen stronger estimate revision activity and sports more attractive valuation metrics than VZIO, so it seems like value investors will conclude that ASAI is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sendas Distribuidora S.A. Sponsored ADR (ASAI) - free report >>

VIZIO Holding Corp. (VZIO) - free report >>

Published in