Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Carrefour SA (CRRFY - Free Report) or Wal-Mart de Mexico SAB de CV (WMMVY - 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.

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.

Both Carrefour SA and Wal-Mart de Mexico SAB de CV have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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 9.35, while WMMVY has a forward P/E of 24.10. We also note that CRRFY has a PEG ratio of 0.40. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WMMVY currently has a PEG ratio of 2.67.

Another notable valuation metric for CRRFY is its P/B ratio of 1.06. 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 7.19.

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

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Carrefour SA (CRRFY) - free report >>

Wal-Mart de Mexico SAB de CV (WMMVY) - free report >>

Published in