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

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Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDY - Free Report) and Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Tesco PLC has a Zacks Rank of #2 (Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TSCDY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. 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.

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.

TSCDY currently has a forward P/E ratio of 11.86, while WMMVY has a forward P/E of 24.10. We also note that TSCDY has a PEG ratio of 2.53. 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 2.72.

Another notable valuation metric for TSCDY is its P/B ratio of 1.58. 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, WMMVY has a P/B of 7.07.

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

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


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