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ASAI or VZIO: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Sendas Distribuidora S.A. Sponsored ADR (ASAI - Free Report) and VIZIO Holding Corp. (VZIO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Sendas Distribuidora S.A. Sponsored ADR and VIZIO Holding Corp. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASAI has an improving earnings outlook. But this is just one piece of the puzzle 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.

ASAI currently has a forward P/E ratio of 17.62, while VZIO has a forward P/E of 111.05. We also note that ASAI has a PEG ratio of 0.44. 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. VZIO currently has a PEG ratio of 4.44.

Another notable valuation metric for ASAI is its P/B ratio of 2.91. 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, VZIO has a P/B of 4.80.

These are just a few of the metrics contributing to ASAI's Value grade of A and VZIO's Value grade of F.

ASAI stands above VZIO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASAI is the superior value option right now.


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Sendas Distribuidora S.A. Sponsored ADR (ASAI) - free report >>

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