Yahoo Finance ADRNY or KMB: Which Is the Better Value Stock Right Now?
Investors with an interest in Consumer Products - Staples stocks have likely encountered both Ahold NV (ADRNY) and Kimberly-Clark (KMB). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Ahold NV is sporting a Zacks Rank of #2 (Buy), while Kimberly-Clark has a Zacks Rank of #3 (Hold). This means that ADRNY'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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ADRNY currently has a forward P/E ratio of 11.10, while KMB has a forward P/E of 19.91. We also note that ADRNY has a PEG ratio of 2.31. 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. KMB currently has a PEG ratio of 4.05.
Another notable valuation metric for ADRNY is its P/B ratio of 1.76. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, KMB has a P/B of 39.18.
Based on these metrics and many more, ADRNY holds a Value grade of A, while KMB has a Value grade of C.
ADRNY stands above KMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ADRNY is the superior value option right now.
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Ahold NV (ADRNY) : Free Stock Analysis Report
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
