CHL or AMX: Which Is the Better Value Stock Right Now?

AMX CHL

Investors interested in Wireless Non-US stocks are likely familiar with China Mobile (CHL - Free Report) and Amer Movil (AMX - Free Report) . 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.

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.

Currently, China Mobile has a Zacks Rank of #2 (Buy), while Amer Movil has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that CHL likely has seen a stronger improvement to its earnings outlook than AMX 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.

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.

CHL currently has a forward P/E ratio of 9.34, while AMX has a forward P/E of 42.50. We also note that CHL has a PEG ratio of 2.81. 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. AMX currently has a PEG ratio of 2.88.

Another notable valuation metric for CHL is its P/B ratio of 0.89. 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, AMX has a P/B of 3.83.

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

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

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