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JRONY vs. WMMVY: Which Stock Is the Better Value Option?

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

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Jeronimo Martins SGPS SA has a Zacks Rank of #1 (Strong Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JRONY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

JRONY currently has a forward P/E ratio of 17.72, while WMMVY has a forward P/E of 23.78. We also note that JRONY has a PEG ratio of 1.23. 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. WMMVY currently has a PEG ratio of 2.64.

Another notable valuation metric for JRONY is its P/B ratio of 5.48. 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, WMMVY has a P/B of 7.37.

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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