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

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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either J. Sainsbury PLC (JSAIY - Free Report) or Walmart (WMT - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

J. Sainsbury PLC and Walmart 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 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JSAIY currently has a forward P/E ratio of 14.21, while WMT has a forward P/E of 31.66. We also note that JSAIY has a PEG ratio of 3.39. 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. WMT currently has a PEG ratio of 3.86.

Another notable valuation metric for JSAIY is its P/B ratio of 1.09. 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, WMT has a P/B of 6.85.

Based on these metrics and many more, JSAIY holds a Value grade of A, while WMT has a Value grade of C.

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


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