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

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Investors interested in Retail - Supermarkets stocks are likely familiar with Kroger (KR - Free Report) and WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both Kroger and WalMart de Mexico SAB de CV are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 14.71, while WMMVY has a forward P/E of 23.72. We also note that KR has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WMMVY currently has a PEG ratio of 2.79.

Another notable valuation metric for KR is its P/B ratio of 4.30. 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 6.69.

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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The Kroger Co. (KR) - free report >>

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