Investors with an interest in Retail - Supermarkets stocks have likely encountered both Kroger (KR) and Wal-Mart de Mexico SAB de CV (WMMVY). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Kroger and Wal-Mart de Mexico SAB de CV are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that KR likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. But this is just one factor that value investors are interested in.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

KR currently has a forward P/E ratio of 13.43, while WMMVY has a forward P/E of 16.50. We also note that KR has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WMMVY currently has a PEG ratio of 2.

Another notable valuation metric for KR is its P/B ratio of 3.46. 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 4.18.

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

KR has seen stronger estimate revision activity and sports more attractive valuation metrics than WMMVY, so it seems like value investors will conclude that KR is the superior option right now.

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The Kroger Co. (KR):Free Stock Analysis Report

Wal-Mart de Mexico SAB de CV (WMMVY):Free Stock Analysis Report

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