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TSCDD vs. WMMVY: Which Stock Is the Better Value Option?

Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDD) and WalMart 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Tesco PLC and WalMart de Mexico SAB de CV have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TSCDD currently has a forward P/E ratio of 9.73, while WMMVY has a forward P/E of 26.10. We also note that TSCDD has a PEG ratio of 1.57. 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 3.07.

Another notable valuation metric for TSCDD is its P/B ratio of 1.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 6.86.

These are just a few of the metrics contributing to TSCDD's Value grade of A and WMMVY's Value grade of D.

Both TSCDD and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TSCDD is the superior value option right now.


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Tesco PLC (TSCDD) : Free Stock Analysis Report
 
WalMart de Mexico SAB de CV (WMMVY) : Free Stock Analysis Report
 
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