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

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Investors interested in stocks from the Cable Television sector have probably already heard of 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Comcast has a Zacks Rank of #1 (Strong Buy), while Rogers Communication has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CMCSA has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

CMCSA currently has a forward P/E ratio of 14.62, while RCI has a forward P/E of 14.77. We also note that CMCSA has a PEG ratio of 1.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RCI currently has a PEG ratio of 2.95.

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 4.19.

These metrics, and several others, help CMCSA earn a Value grade of B, 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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