PFGC or SFM: Which Is the Better Value Stock Right Now?

Core Insights - Performance Food Group (PFGC) has a stronger earnings outlook compared to Sprouts Farmers (SFM), with a Zacks Rank of 2 (Buy) versus SFM's 3 (Hold) [1] - Value investors utilize various valuation metrics to assess if a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [2] Valuation Metrics - PFGC has a forward P/E ratio of 17.06, while SFM's forward P/E is significantly higher at 34.36 [2] - The PEG ratio for PFGC is 0.83, indicating better value relative to its expected earnings growth, compared to SFM's PEG ratio of 3.29 [2] - PFGC's P/B ratio stands at 3.14, while SFM has a much higher P/B ratio of 9.14, suggesting PFGC is more favorably valued [2] Value Grades - PFGC has a Value grade of A, while SFM has a Value grade of C, indicating that PFGC is perceived as a better investment option for value investors [3]