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KR vs. WMMVY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Kroger (KR - Free Report) and WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Kroger and WalMart de Mexico SAB de CV are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KR currently has a forward P/E ratio of 15.19, while WMMVY has a forward P/E of 26.47. We also note that KR has a PEG ratio of 1.54. 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. WMMVY currently has a PEG ratio of 3.12.
Another notable valuation metric for KR is its P/B ratio of 4.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 7.11.
Based on these metrics and many more, KR holds a Value grade of A, while WMMVY has a Value grade of C.
Both KR and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KR is the superior value option right now.
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KR vs. WMMVY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Kroger (KR - Free Report) and WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Kroger and WalMart de Mexico SAB de CV are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KR currently has a forward P/E ratio of 15.19, while WMMVY has a forward P/E of 26.47. We also note that KR has a PEG ratio of 1.54. 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. WMMVY currently has a PEG ratio of 3.12.
Another notable valuation metric for KR is its P/B ratio of 4.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 7.11.
Based on these metrics and many more, KR holds a Value grade of A, while WMMVY has a Value grade of C.
Both KR and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KR is the superior value option right now.