Advertisement
Singapore markets open in 3 hours 56 minutes
  • Straits Times Index

    3,343.35
    +11.65 (+0.35%)
     
  • S&P 500

    5,482.87
    +4.97 (+0.09%)
     
  • Dow

    39,164.06
    +36.26 (+0.09%)
     
  • Nasdaq

    17,858.68
    +53.53 (+0.30%)
     
  • Bitcoin USD

    61,397.77
    +420.26 (+0.69%)
     
  • CMC Crypto 200

    1,281.50
    +15.36 (+1.21%)
     
  • FTSE 100

    8,179.68
    -45.65 (-0.55%)
     
  • Gold

    2,339.20
    +26.00 (+1.12%)
     
  • Crude Oil

    81.87
    +0.97 (+1.20%)
     
  • 10-Yr Bond

    4.2880
    -0.0280 (-0.65%)
     
  • Nikkei

    39,341.54
    -325.53 (-0.82%)
     
  • Hang Seng

    17,716.47
    -373.46 (-2.06%)
     
  • FTSE Bursa Malaysia

    1,584.94
    -6.01 (-0.38%)
     
  • Jakarta Composite Index

    6,967.95
    -6,905.64 (-49.78%)
     
  • PSE Index

    6,390.58
    +77.47 (+1.23%)
     

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

Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Marks and Spencer Group PLC (MAKSY) and Jeronimo Martins SGPS SA (JRONY). 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.

ADVERTISEMENT

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Marks and Spencer Group PLC (MAKSY) : Free Stock Analysis Report

Jeronimo Martins SGPS SA (JRONY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research