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DISH vs. RCI: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Cable Television sector might want to consider either Dish Network or Rogers Communication (RCI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Dish Network and Rogers Communication have a Zacks Rank of # 1 (Strong 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 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.

DISH currently has a forward P/E ratio of 13.64, while RCI has a forward P/E of 19. We also note that DISH has a PEG ratio of 3.80. 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. RCI currently has a PEG ratio of 3.97.

Another notable valuation metric for DISH is its P/B ratio of 1.26. 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, RCI has a P/B of 2.49.

These are just a few of the metrics contributing to DISH's Value grade of B and RCI's Value grade of C.

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


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