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JSAIY or WMT: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Supermarkets stocks are likely familiar with J. Sainsbury PLC (JSAIY - Free Report) and Walmart (WMT - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

J. Sainsbury PLC and Walmart are both sporting a Zacks Rank of #2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

JSAIY currently has a forward P/E ratio of 13.32, while WMT has a forward P/E of 38.94. We also note that JSAIY has a PEG ratio of 3.73. 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. WMT currently has a PEG ratio of 4.86.

Another notable valuation metric for JSAIY is its P/B ratio of 1.15. 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, WMT has a P/B of 8.97.

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

Both JSAIY and WMT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JSAIY is the superior value option right now.


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