Back to top

Image: Bigstock

IMKTA vs. CBD: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Ingles (IMKTA - Free Report) or CBD . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Ingles is sporting a Zacks Rank of #1 (Strong Buy), while CBD has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IMKTA has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

IMKTA currently has a forward P/E ratio of 9.13, while CBD has a forward P/E of 20.59. We also note that IMKTA has a PEG ratio of 1. 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. CBD currently has a PEG ratio of 1.02.

Another notable valuation metric for IMKTA is its P/B ratio of 0.99. 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, CBD has a P/B of 1.84.

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

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


See More Zacks Research for These Tickers


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


Ingles Markets, Incorporated (IMKTA) - free report >>

Published in