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CRRFY or WMMVY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Carrefour SA (CRRFY - Free Report) or WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Carrefour SA has a Zacks Rank of #2 (Buy), while WalMart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CRRFY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CRRFY currently has a forward P/E ratio of 9.31, while WMMVY has a forward P/E of 26.04. We also note that CRRFY has a PEG ratio of 0.48. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WMMVY currently has a PEG ratio of 3.07.

Another notable valuation metric for CRRFY is its P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 6.90.

These metrics, and several others, help CRRFY earn a Value grade of A, while WMMVY has been given a Value grade of C.

CRRFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CRRFY is likely the superior value option right now.


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Carrefour SA (CRRFY) - free report >>

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