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JRONY vs. WMMVY: Which Stock Should Value Investors Buy Now?

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Investors interested in Retail - Supermarkets stocks are likely familiar with Jeronimo Martins SGPS SA (JRONY - Free Report) and WalMart de Mexico SAB de CV (WMMVY - 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.

Currently, Jeronimo Martins SGPS SA has a Zacks Rank of #1 (Strong Buy), while WalMart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JRONY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. But this is just one piece of the puzzle 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

JRONY currently has a forward P/E ratio of 19.76, while WMMVY has a forward P/E of 24.05. We also note that JRONY has a PEG ratio of 1.38. 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. WMMVY currently has a PEG ratio of 2.77.

Another notable valuation metric for JRONY is its P/B ratio of 5.12. 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, WMMVY has a P/B of 7.27.

These metrics, and several others, help JRONY earn a Value grade of B, while WMMVY has been given a Value grade of C.

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


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Jeronimo Martins SGPS SA (JRONY) - free report >>

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