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KT vs. BB: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Wireless Non-US stocks have likely encountered both KT Corp. (KT - Free Report) and BlackBerry (BB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both KT Corp. and BlackBerry have a Zacks Rank of # 2 (Buy) right now. 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. But this is just one piece of the puzzle for value investors.

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.

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.

KT currently has a forward P/E ratio of 7.62, while BB has a forward P/E of 46.10. We also note that KT has a PEG ratio of 0.62. 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. BB currently has a PEG ratio of 0.89.

Another notable valuation metric for KT is its P/B ratio of 0.38. 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, BB has a P/B of 1.34.

Based on these metrics and many more, KT holds a Value grade of A, while BB has a Value grade of F.

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


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