KT vs. BB: Which Stock Is the Better Value Option?

KT BB

Investors looking for stocks in the Wireless Non-US sector might want to consider either KT Corp. (KT - Free Report) or BlackBerry (BB - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both KT Corp. and BlackBerry are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

KT currently has a forward P/E ratio of 8.36, while BB has a forward P/E of 101.60. We also note that KT has a PEG ratio of 0.76. 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. BB currently has a PEG ratio of 1.96.

Another notable valuation metric for KT is its P/B ratio of 0.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BB has a P/B of 1.11.

These metrics, and several others, help KT earn a Value grade of A, while BB has been given a Value grade of C.

Both KT and BB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KT is the superior value option right now.

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