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

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Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) and Walmart (WMT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Wal-Mart de Mexico SAB de CV and Walmart are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

WMMVY currently has a forward P/E ratio of 17.08, while WMT has a forward P/E of 27.53. We also note that WMMVY has a PEG ratio of 1.84. 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. WMT currently has a PEG ratio of 3.85.

Another notable valuation metric for WMMVY is its P/B ratio of 4.57. 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, WMT has a P/B of 6.10.

These are just a few of the metrics contributing to WMMVY's Value grade of B and WMT's Value grade of C.

Both WMMVY and WMT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WMMVY is the superior value option right now.


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