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CRNT or TSU: Which Is the Better Value Stock Right Now?

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Investors with an interest in Wireless Non-US stocks have likely encountered both Ceragon Networks (CRNT - Free Report) and TIM Participacoes S.A. . 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, Ceragon Networks is sporting a Zacks Rank of #2 (Buy), while TIM Participacoes S.A. has a Zacks Rank of #3 (Hold). This means that CRNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CRNT currently has a forward P/E ratio of 11.68, while TSU has a forward P/E of 18.25. We also note that CRNT has a PEG ratio of 0.78. 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. TSU currently has a PEG ratio of 1.51.

Another notable valuation metric for CRNT is its P/B ratio of 1.27. 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, TSU has a P/B of 1.45.

Based on these metrics and many more, CRNT holds a Value grade of A, while TSU has a Value grade of C.

CRNT has seen stronger estimate revision activity and sports more attractive valuation metrics than TSU, so it seems like value investors will conclude that CRNT is the superior option right now.


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