TSCDY vs. WMMVY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Tesco PLC (TSCDY) or 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Tesco PLC is sporting a Zacks Rank of #2 (Buy), while Wal-Mart de Mexico SAB de CV has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TSCDY likely has seen a stronger improvement to its earnings outlook than WMMVY has recently. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TSCDY currently has a forward P/E ratio of 13.54, while WMMVY has a forward P/E of 18.71. We also note that TSCDY has a PEG ratio of 1.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WMMVY currently has a PEG ratio of 2.10.
Another notable valuation metric for TSCDY is its P/B ratio of 2.21. 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 4.34.
Based on these metrics and many more, TSCDY holds a Value grade of A, while WMMVY has a Value grade of D.
TSCDY has seen stronger estimate revision activity and sports more attractive valuation metrics than WMMVY, so it seems like value investors will conclude that TSCDY is the superior option right now.
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Tesco PLC (TSCDY) : Free Stock Analysis Report
Wal-Mart de Mexico SAB de CV (WMMVY) : Free Stock Analysis Report