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KT or BB: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Wireless Non-US sector have probably already heard of KT Corp. (KT - Free Report) and BlackBerry (BB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both KT Corp. and BlackBerry are holding a Zacks Rank of # 2 (Buy). 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 only part of the picture for value investors.
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 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.
KT currently has a forward P/E ratio of 8.83, while BB has a forward P/E of 153.14. We also note that KT has a PEG ratio of 0.80. 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 2.95.
Another notable valuation metric for KT is its P/B ratio of 0.42. 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, BB has a P/B of 1.17.
Based on these metrics and many more, KT holds a Value grade of A, while BB has a Value grade of C.
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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KT or BB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Wireless Non-US sector have probably already heard of KT Corp. (KT - Free Report) and BlackBerry (BB - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both KT Corp. and BlackBerry are holding a Zacks Rank of # 2 (Buy). 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 only part of the picture for value investors.
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 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.
KT currently has a forward P/E ratio of 8.83, while BB has a forward P/E of 153.14. We also note that KT has a PEG ratio of 0.80. 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 2.95.
Another notable valuation metric for KT is its P/B ratio of 0.42. 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, BB has a P/B of 1.17.
Based on these metrics and many more, KT holds a Value grade of A, while BB has a Value grade of C.
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.