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CMCSA vs. RCI: Which Stock Is the Better Value Option?

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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 presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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 #3 (Hold) 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 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CMCSA currently has a forward P/E ratio of 14.64, while RCI has a forward P/E of 15.16. We also note that CMCSA has a PEG ratio of 1.20. 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. RCI currently has a PEG ratio of 3.03.

Another notable valuation metric for CMCSA is its P/B ratio of 2.58. 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, RCI has a P/B of 4.38.

Based on these metrics and many more, CMCSA holds a Value grade of B, while RCI has a Value grade of C.

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


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