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DTEGY or TU: Which Is the Better Value Stock Right Now?
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Investors with an interest in Diversified Communication Services stocks have likely encountered both Deutsche Telekom AG (DTEGY - Free Report) and Telus (TU - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while Telus has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that DTEGY likely has seen a stronger improvement to its earnings outlook than TU has recently. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DTEGY currently has a forward P/E ratio of 12.55, while TU has a forward P/E of 23.31. We also note that DTEGY has a PEG ratio of 0.80. 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. TU currently has a PEG ratio of 2.76.
Another notable valuation metric for DTEGY is its P/B ratio of 1.23. 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, TU has a P/B of 2.22.
Based on these metrics and many more, DTEGY holds a Value grade of B, while TU has a Value grade of C.
DTEGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DTEGY is likely the superior value option right now.
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DTEGY or TU: Which Is the Better Value Stock Right Now?
Investors with an interest in Diversified Communication Services stocks have likely encountered both Deutsche Telekom AG (DTEGY - Free Report) and Telus (TU - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while Telus has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that DTEGY likely has seen a stronger improvement to its earnings outlook than TU has recently. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DTEGY currently has a forward P/E ratio of 12.55, while TU has a forward P/E of 23.31. We also note that DTEGY has a PEG ratio of 0.80. 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. TU currently has a PEG ratio of 2.76.
Another notable valuation metric for DTEGY is its P/B ratio of 1.23. 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, TU has a P/B of 2.22.
Based on these metrics and many more, DTEGY holds a Value grade of B, while TU has a Value grade of C.
DTEGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DTEGY is likely the superior value option right now.