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JRONY or WMMVY: Which Is the Better Value Stock Right Now?

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Investors interested in Retail - Supermarkets stocks are likely familiar with Jeronimo Martins SGPS SA (JRONY - Free Report) and 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.

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.

Both Jeronimo Martins SGPS SA and Wal-Mart de Mexico SAB de CV have a Zacks Rank of # 2 (Buy) right now. 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 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 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.

JRONY currently has a forward P/E ratio of 18.44, while WMMVY has a forward P/E of 22.91. We also note that JRONY has a PEG ratio of 1.28. 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 2.54.

Another notable valuation metric for JRONY is its P/B ratio of 5.70. 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 7.10.

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

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


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