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CRRFY vs. WMT: Which Stock Is the Better Value Option?

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both Carrefour SA (CRRFY - Free Report) and Walmart (WMT - 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.

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.

Carrefour SA has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CRRFY likely has seen a stronger improvement to its earnings outlook than WMT has recently. However, value investors will care about much more than just this.

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.

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.

CRRFY currently has a forward P/E ratio of 7.57, while WMT has a forward P/E of 33.21. We also note that CRRFY has a PEG ratio of 0.53. 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 4.05.

Another notable valuation metric for CRRFY is its P/B ratio of 0.81. 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 7.18.

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

CRRFY has seen stronger estimate revision activity and sports more attractive valuation metrics than WMT, so it seems like value investors will conclude that CRRFY is the superior option right now.


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