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MAKSY vs. JRONY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Marks and Spencer Group PLC (MAKSY - Free Report) and Jeronimo Martins SGPS SA (JRONY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Marks and Spencer Group PLC has a Zacks Rank of #2 (Buy), while Jeronimo Martins SGPS SA has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MAKSY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

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.

MAKSY currently has a forward P/E ratio of 10.30, while JRONY has a forward P/E of 15.95. We also note that MAKSY has a PEG ratio of 0.71. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. JRONY currently has a PEG ratio of 1.22.

Another notable valuation metric for MAKSY is its P/B ratio of 1.66. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JRONY has a P/B of 5.20.

These metrics, and several others, help MAKSY earn a Value grade of A, while JRONY has been given a Value grade of C.

MAKSY stands above JRONY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MAKSY is the superior value option right now.


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Marks and Spencer Group PLC (MAKSY) - free report >>

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