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Buffett vs. Woodford: Who’s Winning on Tesco PLC (TSCO)?

What are the prospects for Tesco and Woodford’s four companies in the coming year? The following table gives some forecast valuation data.

Company P/E Earnings-per-Share Growth PEG Dividend Yield
Tesco 10.5 5.2% 2 4.4%
Smith & Nephew 14.3 4.7% 3 2.3%
Sanofi 11.6 1.5% 7.7 4.2%
Elan N/A N/A N/A 0%
Capita 14.2 8% 1.8 3.3%

N/A = not applicable due to negative earnings.

On these numbers, Tesco looks a clear “value” winner. The supermarket takes the top spot on a low price-to-earnings ratio and high yield. It also takes second place on earnings-per-share growth and P/E-to-EPS growth; in the case of the latter, low equals better value.

The next best pick on the numbers is outsourcing group Capita, which comes top on two measures: EPS growth and PEG.

If you’re thinking of investing in Tesco, help yourself to a free and exclusive Motley Fool report that gives a full analysis of the company’s prospects. This report will help you decide for yourself whether Buffett has bought a blue-chip bargain and whether Tesco’s shares are still an attractive buy today. “The One U.K. Share Warren Buffett Loves” can be in your inbox in seconds — simply click here.

The article Buffett vs. Woodford: Who’s Winning on Tesco? originally appeared on

G A Chester does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares in Tesco and Smith & Nephew. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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