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VIVHY or CHT: 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 Vivendi SA (VIVHY - Free Report) and Chunghwa (CHT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Vivendi SA has a Zacks Rank of #2 (Buy), while Chunghwa has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VIVHY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

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.

VIVHY currently has a forward P/E ratio of 12.92, while CHT has a forward P/E of 24.64. We also note that VIVHY has a PEG ratio of 0.96. 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. CHT currently has a PEG ratio of 17.72.

Another notable valuation metric for VIVHY is its P/B ratio of 0.66. 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, CHT has a P/B of 2.20.

Based on these metrics and many more, VIVHY holds a Value grade of B, while CHT has a Value grade of D.

VIVHY has seen stronger estimate revision activity and sports more attractive valuation metrics than CHT, so it seems like value investors will conclude that VIVHY is the superior option right now.


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Chunghwa Telecom Co., Ltd. (CHT) - free report >>

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