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ADRNY or CLX: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ahold NV (ADRNY - Free Report) and Clorox (CLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Clorox has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ADRNY 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 analyze a variety of traditional, tried-and-true metrics to help find companies 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 14.25, while CLX has a forward P/E of 18.34. We also note that ADRNY has a PEG ratio of 1.66. 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. CLX currently has a PEG ratio of 2.94.

Another notable valuation metric for ADRNY is its P/B ratio of 2.34. 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, CLX has a P/B of 84.39.

These are just a few of the metrics contributing to ADRNY's Value grade of A and CLX's Value grade of D.

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


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