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

CRRFY WMMVY

Investors interested in Retail - Supermarkets stocks are likely familiar with Carrefour SA (CRRFY - Free Report) and WalMart 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Carrefour SA and WalMart de Mexico SAB de CV are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that CRRFY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. However, value investors will care about much more than just this.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CRRFY currently has a forward P/E ratio of 10.70, while WMMVY has a forward P/E of 28.21. We also note that CRRFY has a PEG ratio of 0.80. 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. WMMVY currently has a PEG ratio of 3.32.

Another notable valuation metric for CRRFY is its P/B ratio of 1.19. 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, WMMVY has a P/B of 7.76.

Based on these metrics and many more, CRRFY holds a Value grade of A, while WMMVY has a Value grade of C.

CRRFY sticks out from WMMVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CRRFY is the better option right now.

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