Yahoo Finance CRRFY or WMMVY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of 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.
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.
Currently, both Carrefour SA and Wal-Mart de Mexico SAB de CV are holding a Zacks Rank of # 2 (Buy). 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. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 9.13, while WMMVY has a forward P/E of 22.87. We also note that CRRFY has a PEG ratio of 0.39. 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. WMMVY currently has a PEG ratio of 2.54.
Another notable valuation metric for CRRFY is its P/B ratio of 1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WMMVY has a P/B of 6.83.
These metrics, and several others, help CRRFY earn a Value grade of A, while WMMVY has been given a Value grade of C.
Both CRRFY and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CRRFY is 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
