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Vivendi SA (VIVHY) - free report >>
Nippon Telegraph and Telephone Corporation (NTTYY) - free report >>
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Vivendi SA (VIVHY) - free report >>
Nippon Telegraph and Telephone Corporation (NTTYY) - free report >>
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VIVHY or NTTYY: Which Is the Better Value Stock Right Now?
Investors interested in Diversified Communication Services stocks are likely familiar with Vivendi SA (VIVHY - Free Report) and NTT (NTTYY - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vivendi SA is sporting a Zacks Rank of #2 (Buy), while NTT has a Zacks Rank of #3 (Hold). This means that VIVHY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VIVHY currently has a forward P/E ratio of 11.55, while NTTYY has a forward P/E of 270. We also note that VIVHY has a PEG ratio of 0.98. 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. NTTYY currently has a PEG ratio of 46.96.
Another notable valuation metric for VIVHY is its P/B ratio of 0.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NTTYY has a P/B of 1.34.
These metrics, and several others, help VIVHY earn a Value grade of B, while NTTYY has been given a Value grade of C.
VIVHY 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 VIVHY is likely the superior value option right now.