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KR vs. WMT: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Retail - Supermarkets stocks have likely encountered both Kroger (KR - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Kroger has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that KR likely has seen a stronger improvement to its earnings outlook than WMT has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 12.24, while WMT has a forward P/E of 26.25. We also note that KR has a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT currently has a PEG ratio of 4.66.
Another notable valuation metric for KR is its P/B ratio of 2.93. 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, WMT has a P/B of 4.95.
These metrics, and several others, help KR earn a Value grade of A, while WMT has been given a Value grade of C.
KR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KR is likely the superior value option right now.
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KR vs. WMT: Which Stock Should Value Investors Buy Now?
Investors with an interest in Retail - Supermarkets stocks have likely encountered both Kroger (KR - 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Kroger has a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that KR likely has seen a stronger improvement to its earnings outlook than WMT has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 12.24, while WMT has a forward P/E of 26.25. We also note that KR has a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT currently has a PEG ratio of 4.66.
Another notable valuation metric for KR is its P/B ratio of 2.93. 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, WMT has a P/B of 4.95.
These metrics, and several others, help KR earn a Value grade of A, while WMT has been given a Value grade of C.
KR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KR is likely the superior value option right now.