CRRFY vs. WMMVY: Which Stock Should Value Investors Buy Now?

Investors interested in Retail - Supermarkets stocks are likely familiar with Carrefour SA (CRRFY) and Wal-Mart de Mexico SAB de CV (WMMVY). 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.

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 and Wal-Mart de Mexico SAB de CV are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CRRFY'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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CRRFY currently has a forward P/E ratio of 9.25, while WMMVY has a forward P/E of 17.06. We also note that CRRFY has a PEG ratio of 2.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WMMVY currently has a PEG ratio of 4.96.

Another notable valuation metric for CRRFY is its P/B ratio of 1.05. 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 4.59.

These metrics, and several others, help CRRFY earn a Value grade of A, while WMMVY has been given a Value grade of C.

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

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Carrefour SA (CRRFY): Free Stock Analysis Report

Wal-Mart de Mexico SAB de CV (WMMVY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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