Back to top

Image: Bigstock

MAKSY or JRONY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

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.

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.

Marks and Spencer Group PLC has a Zacks Rank of #2 (Buy), while Jeronimo Martins SGPS SA has a Zacks Rank of #4 (Sell) right now. This means that MAKSY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

MAKSY currently has a forward P/E ratio of 10.43, while JRONY has a forward P/E of 15.16. We also note that MAKSY has a PEG ratio of 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JRONY currently has a PEG ratio of 1.35.

Another notable valuation metric for MAKSY is its P/B ratio of 1.69. 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, JRONY has a P/B of 4.82.

These are just a few of the metrics contributing to MAKSY's Value grade of A and JRONY's Value grade of C.

MAKSY sticks out from JRONY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MAKSY is the better option right now.


See More Zacks Research for These Tickers


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


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

Jeronimo Martins SGPS SA (JRONY) - free report >>

Published in