The Tesco (LSE:TSCO) share price is up 22% over the previous 12 months whereas Sainsbury’s (LSE:SBRY) shares are flat. In actual fact, there’s been fairly a divergence in fortunes in recent times, with the Tesco share price virtually doubling from lows three years in the past.

Nevertheless, which inventory is best worth for buyers at present? Right here’s some metrics that will assist us make the proper investing selections.

1. Worth-to-earnings

Trying on the price-to-earnings (P/E) ratio, Tesco’s valuation exhibits a gradual decline from 16 occasions earnings in 2025 to 13.4 occasions by 2027. This lower aligns with Tesco’s constant earnings per share (EPS) development, rising from 23.5p in 2025 to twenty-eight.3p in 2027.

Against this, Sainsbury’s P/E ratio begins greater at 13.6 occasions for the ahead yr (2026) however falls sharply to 11.4 occasions by 2028. This information means that Sainsbury’s is cheaper however could also be rising at a barely slower charge. It’s additionally value noting that the ahead reporting durations are barely totally different.

2. Income development

Tesco’s income is predicted to develop steadily from £69.9bn in 2025 to £73.7bn in 2027, reflecting constant gross sales enlargement. Sainsbury’s income additionally will increase, just about on the similar tempo in proportion phrases. It’s anticipated to maneuver from £33.1bn in 2025 to £35bn by 2028. Whereas each supermarkets are rising, Tesco’s scale offers it a transparent benefit in absolute gross sales, almost doubling Sainsbury’s income all through the interval.

3. Market share

When it comes to market share, Tesco stays the UK’s main grocer with 27.8% of the market as of April. Sainsbury’s holds a decent second place with 15.3%. Each retailers have seen slight beneficial properties in comparison with the earlier yr, with Tesco up from 27.3% and Sainsbury’s from 15.2%. This stability highlights Tesco’s dominant place and Sainsbury’s regular maintain on its phase of the market.

4. Dividend yield

The dividend yield tells an attention-grabbing story. Sainsbury’s provides the next yield, rising from 5.1% in 2026 to five.61% in 2028, in comparison with Tesco’s extra modest 3.58% to three.98% over 2025 to 2027.

Nevertheless, Sainsbury’s payout ratio’s greater, beginning at 69% in 2026 and falling to round 64% by 2028. Tesco’s payout ratio’s extra conservative, round 58% in 2025 and simply over 53% by 2027, suggesting a extra balanced strategy to rewarding shareholders whereas retaining earnings for development.

5. Internet debt

Relating to the stability sheet, Tesco carries a heavier debt load. Internet debt’s anticipated to return in round £9.45bn in 2025, rising barely to just about £11bn by 2027. Sainsbury’s internet debt is decrease, beginning at £5.01bn in 2026 and rising modestly to £5.48bn by 2028. Each firms preserve manageable debt ranges relative to their earnings and capitalisation.

The underside line

In abstract, there’s little to separate the 2 general. However in a deepening price warfare, scale issues. Tesco’s dimension gave it the sting in the course of the cost-of-living disaster, and that benefit is more likely to persist. Nevertheless, personally, I consider each are value contemplating. I’m preserving my powder dry for now although.