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ASAIY or K: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Sendas Distribuidora S.A. Sponsored ADR (ASAIY - Free Report) and Kellanova (K - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Sendas Distribuidora S.A. Sponsored ADR and Kellanova are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASAIY has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ASAIY currently has a forward P/E ratio of 19.62, while K has a forward P/E of 21.68. We also note that ASAIY has a PEG ratio of 0.54. 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. K currently has a PEG ratio of 4.33.

Another notable valuation metric for ASAIY is its P/B ratio of 2.92. 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, K has a P/B of 7.12.

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

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


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Kellanova (K) - free report >>

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