Yahoo Finance JSAIY or WMT: Which Is the Better Value Stock Right Now?
Investors with an interest in Retail - Supermarkets stocks have likely encountered both J. Sainsbury PLC (JSAIY) and Walmart (WMT). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, J. Sainsbury PLC has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #3 (Hold). This means that JSAIY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
JSAIY currently has a forward P/E ratio of 12.68, while WMT has a forward P/E of 25.68. We also note that JSAIY has a PEG ratio of 3.47. 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. WMT currently has a PEG ratio of 3.95.
Another notable valuation metric for JSAIY is its P/B ratio of 0.90. 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, WMT has a P/B of 5.41.
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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J. Sainsbury PLC (JSAIY) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
