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SJM vs. KRYAY: Which Stock Is the Better Value Option?

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Investors interested in Food - Miscellaneous stocks are likely familiar with Smucker (SJM - Free Report) and Kerry Group PLC (KRYAY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Smucker has a Zacks Rank of #2 (Buy), while Kerry Group PLC has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SJM has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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.

SJM currently has a forward P/E ratio of 11.95, while KRYAY has a forward P/E of 19.19. We also note that SJM has a PEG ratio of 1.72. 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. KRYAY currently has a PEG ratio of 2.53.

Another notable valuation metric for SJM is its P/B ratio of 2.38. 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, KRYAY has a P/B of 2.47.

These metrics, and several others, help SJM earn a Value grade of B, while KRYAY has been given a Value grade of D.

SJM sticks out from KRYAY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SJM is the better option right now.

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