Yahoo Finance CRRFY or WMMVY: Which Is the Better Value Stock Right Now?
Investors interested in Retail - Supermarkets stocks are likely familiar with Carrefour SA (CRRFY) and WalMart de Mexico SAB de CV (WMMVY). 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.
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 and WalMart de Mexico SAB de CV are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CRRFY has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 11.42, while WMMVY has a forward P/E of 26.44. We also note that CRRFY has a PEG ratio of 0.91. 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 3.11.
Another notable valuation metric for CRRFY is its P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WMMVY has a P/B of 6.98.
Based on these metrics and many more, CRRFY holds a Value grade of A, while WMMVY has a 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
WalMart de Mexico SAB de CV (WMMVY) : Free Stock Analysis Report
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