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IMKTA vs. CBD: Which Stock Should Value Investors Buy Now?

Is (M) Outperforming Other Retail-Wholesale Stocks This Year?
Is (M) Outperforming Other Retail-Wholesale Stocks This Year?

Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Ingles (IMKTA) or CBD (CBD). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Ingles has a Zacks Rank of #1 (Strong Buy), while CBD has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that IMKTA likely has seen a stronger improvement to its earnings outlook than CBD has recently. 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.

IMKTA currently has a forward P/E ratio of 9.45, while CBD has a forward P/E of 21.34. We also note that IMKTA has a PEG ratio of 1.04. 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. CBD currently has a PEG ratio of 1.06.

Another notable valuation metric for IMKTA is its P/B ratio of 1.03. 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 1.63.

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.


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Ingles Markets, Incorporated (IMKTA) : Free Stock Analysis Report
 
Companhia Brasileira de Distribuicao (CBD) : Free Stock Analysis Report
 
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