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CMCSA or RCI: Which Is the Better Value Stock Right Now?

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Investors with an interest in Cable Television stocks have likely encountered both Comcast (CMCSA - Free Report) and 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Comcast has a Zacks Rank of #2 (Buy), while Rogers Communication has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that CMCSA likely has seen a stronger improvement to its earnings outlook than RCI has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

CMCSA currently has a forward P/E ratio of 14.43, while RCI has a forward P/E of 15.46. We also note that CMCSA has a PEG ratio of 1.22. 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. RCI currently has a PEG ratio of 3.09.

Another notable valuation metric for CMCSA is its P/B ratio of 2.61. 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 4.34.

These metrics, and several others, help CMCSA earn a Value grade of A, while RCI has been given a Value grade of C.

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


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