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

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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) or Walmart (WMT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Right now, Wal-Mart de Mexico SAB de CV is sporting a Zacks Rank of #2 (Buy), while Walmart has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that WMMVY likely has seen a stronger improvement to its earnings outlook than WMT has recently. But this is just one piece of the puzzle for value investors.

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 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.

WMMVY currently has a forward P/E ratio of 16.19, while WMT has a forward P/E of 41.24. We also note that WMMVY has a PEG ratio of 1.90. 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. WMT currently has a PEG ratio of 4.44.

Another notable valuation metric for WMMVY is its P/B ratio of 4.11. 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, WMT has a P/B of 9.41.

These are just a few of the metrics contributing to WMMVY's Value grade of B and WMT's Value grade of D.

WMMVY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WMMVY is the superior value option right now.

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