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

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both Carrefour SA (CRRFY - Free Report) and WalMart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Carrefour SA and WalMart de Mexico SAB de CV are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks 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.

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.

CRRFY currently has a forward P/E ratio of 10.40, while WMMVY has a forward P/E of 27.20. We also note that CRRFY has a PEG ratio of 1.30. 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. WMMVY currently has a PEG ratio of 3.20.

Another notable valuation metric for CRRFY is its P/B ratio of 1.20. 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, WMMVY has a P/B of 7.05.

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

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


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