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T vs. QTNA: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Wireless National sector might want to consider either AT&T (T - Free Report) or QUANTENNA COMMS . 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Right now, AT&T is sporting a Zacks Rank of #1 (Strong Buy), while QUANTENNA COMMS has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that T likely has seen a stronger improvement to its earnings outlook than QTNA has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

T currently has a forward P/E ratio of 9.13, while QTNA has a forward P/E of 92.32. We also note that T has a PEG ratio of 2.67. 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. QTNA currently has a PEG ratio of 4.62.

Another notable valuation metric for T is its P/B ratio of 1.08. 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, QTNA has a P/B of 3.10.

These metrics, and several others, help T earn a Value grade of A, while QTNA has been given a Value grade of D.

T sticks out from QTNA in both our Zacks Rank and Style Scores models, so value investors will likely feel that T is the better option right now.


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