Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Marks and Spencer Group PLC (MAKSY - Free Report) and Jeronimo Martins SGPS SA (JRONY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Marks and Spencer Group PLC has a Zacks Rank of #2 (Buy), while Jeronimo Martins SGPS SA has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MAKSY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

MAKSY currently has a forward P/E ratio of 11.78, while JRONY has a forward P/E of 16.26. We also note that MAKSY has a PEG ratio of 0.71. 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. JRONY currently has a PEG ratio of 2.55.

Another notable valuation metric for MAKSY is its P/B ratio of 2.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, JRONY has a P/B of 4.55.

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

MAKSY has seen stronger estimate revision activity and sports more attractive valuation metrics than JRONY, so it seems like value investors will conclude that MAKSY is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Marks and Spencer Group PLC (MAKSY) - free report >>

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

Published in