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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 presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Sendas Distribuidora S.A. Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while Kellanova has a Zacks Rank of #4 (Sell) right now. This means that ASAIY'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.

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.

ASAIY currently has a forward P/E ratio of 16.26, while K has a forward P/E of 21.36. We also note that ASAIY has a PEG ratio of 0.45. 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 4.26.

Another notable valuation metric for ASAIY is its P/B ratio of 2.55. 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 6.91.

Based on these metrics and many more, ASAIY holds a Value grade of A, while K has a Value grade of C.

ASAIY has seen stronger estimate revision activity and sports more attractive valuation metrics than K, so it seems like value investors will conclude that ASAIY is the superior option right now.


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Kellanova (K) - free report >>

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

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