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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 offers value investors a better bang for their buck right now? We'll need to 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.

Wal-Mart de Mexico SAB de CV and Walmart are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that WMMVY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

WMMVY currently has a forward P/E ratio of 17.37, while WMT has a forward P/E of 28.30. We also note that WMMVY has a PEG ratio of 1.87. 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. WMT currently has a PEG ratio of 3.96.

Another notable valuation metric for WMMVY is its P/B ratio of 4.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WMT has a P/B of 6.28.

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

WMMVY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WMMVY is the superior value option right now.


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