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JBS or USFD: Which Is the Better Value Stock Right Now?

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Investors with an interest in Food - Miscellaneous stocks have likely encountered both JBS N.V. (JBS - Free Report) and US Foods (USFD - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

JBS N.V. has a Zacks Rank of #2 (Buy), while US Foods has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JBS has an improving earnings outlook. But this is only part of the picture for value investors.

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.

JBS currently has a forward P/E ratio of 8.14, while USFD has a forward P/E of 21.82. We also note that JBS has a PEG ratio of 0.71. 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. USFD currently has a PEG ratio of 1.21.

Another notable valuation metric for JBS is its P/B ratio of 1.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, USFD has a P/B of 5.13.

These metrics, and several others, help JBS earn a Value grade of A, while USFD has been given a Value grade of C.

JBS stands above USFD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JBS is the superior value option right now.

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