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

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both J. Sainsbury PLC (JSAIY - Free Report) and Wal-Mart 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

J. Sainsbury PLC and Wal-Mart de Mexico SAB de CV are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that JSAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

JSAIY currently has a forward P/E ratio of 14.33, while WMMVY has a forward P/E of 21.63. We also note that JSAIY has a PEG ratio of 0.43. 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. WMMVY currently has a PEG ratio of 2.64.

Another notable valuation metric for JSAIY is its P/B ratio of 0.92. 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, WMMVY has a P/B of 6.93.

These are just a few of the metrics contributing to JSAIY's Value grade of A and WMMVY's Value grade of C.

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


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J. Sainsbury PLC (JSAIY) - free report >>

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