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ADRNY or CLX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Ahold NV (ADRNY - Free Report) or Clorox (CLX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Clorox has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than CLX has recently. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ADRNY currently has a forward P/E ratio of 11.26, while CLX has a forward P/E of 16.67. We also note that ADRNY has a PEG ratio of 1.71. 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 3.02.
Another notable valuation metric for ADRNY is its P/B ratio of 1.8. 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 46.88.
Based on these metrics and many more, ADRNY holds a Value grade of A, while CLX has a Value grade of C.
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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ADRNY or CLX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Consumer Products - Staples sector might want to consider either Ahold NV (ADRNY - Free Report) or Clorox (CLX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Clorox has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than CLX has recently. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ADRNY currently has a forward P/E ratio of 11.26, while CLX has a forward P/E of 16.67. We also note that ADRNY has a PEG ratio of 1.71. 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 3.02.
Another notable valuation metric for ADRNY is its P/B ratio of 1.8. 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 46.88.
Based on these metrics and many more, ADRNY holds a Value grade of A, while CLX has a Value grade of C.
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.