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ASAIY vs. K: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Sendas Distribuidora S.A. Sponsored ADR (ASAIY - Free Report) or 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Sendas Distribuidora S.A. Sponsored ADR has a Zacks Rank of #2 (Buy), while Kellanova has a Zacks Rank of #4 (Sell). This means that ASAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

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.

ASAIY currently has a forward P/E ratio of 19.67, while K has a forward P/E of 21.05. We also note that ASAIY has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. K currently has a PEG ratio of 4.20.

Another notable valuation metric for ASAIY is its P/B ratio of 3.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, K has a P/B of 6.92.

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

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 >>

Stevanato Group S.p.A. (STVN) - free report >>

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

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