Yahoo Finance CRRFY vs. WMMVY: Which Stock Should Value Investors Buy Now?
Investors interested in Retail - Supermarkets stocks are likely familiar with Carrefour SA (CRRFY) and Wal-Mart de Mexico SAB de CV (WMMVY). 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 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.
Carrefour SA has a Zacks Rank of #2 (Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CRRFY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 9.52, while WMMVY has a forward P/E of 23.76. We also note that CRRFY has a PEG ratio of 0.40. 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 2.64.
Another notable valuation metric for CRRFY is its P/B ratio of 1.08. 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 6.88.
These are just a few of the metrics contributing to CRRFY's Value grade of A and WMMVY's Value grade of C.
CRRFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CRRFY is likely the superior value option right now.
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Carrefour SA (CRRFY) : Free Stock Analysis Report
Wal-Mart de Mexico SAB de CV (WMMVY) : Free Stock Analysis Report
