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MAKSY 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 Marks and Spencer Group PLC (MAKSY - Free Report) and Wal-Mart 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Marks and Spencer Group PLC 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 factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MAKSY currently has a forward P/E ratio of 11.50, while WMMVY has a forward P/E of 20.46. We also note that MAKSY has a PEG ratio of 0.69. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WMMVY currently has a PEG ratio of 2.21.

Another notable valuation metric for MAKSY is its P/B ratio of 2.03. 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 6.83.

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

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


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Marks and Spencer Group PLC (MAKSY) - free report >>

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