Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Carrefour SA (CRRFY) and Jeronimo Martins SGPS SA (JRONY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Carrefour SA and Jeronimo Martins SGPS SA are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.

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.

CRRFY currently has a forward P/E ratio of 7.20, while JRONY has a forward P/E of 16. We also note that CRRFY has a PEG ratio of 0.79. 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. JRONY currently has a PEG ratio of 2.51.

Another notable valuation metric for CRRFY is its P/B ratio of 0.75. 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, JRONY has a P/B of 4.48.

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

Both CRRFY and JRONY 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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