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ADRNY vs. CLX: Which Stock Should Value Investors Buy Now?

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Investors interested in Consumer Products - Staples stocks are likely familiar with 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Ahold NV is sporting a Zacks Rank of #1 (Strong Buy), while Clorox has a Zacks Rank of #4 (Sell). This means that ADRNY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

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 13.29, while CLX has a forward P/E of 20.07. We also note that ADRNY has a PEG ratio of 1.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CLX currently has a PEG ratio of 3.41.

Another notable valuation metric for ADRNY is its P/B ratio of 2.28. 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 84.19.

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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