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

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Investors with an interest in Wireless Non-US stocks have likely encountered both KT Corp. (KT - Free Report) and 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

KT Corp. has a Zacks Rank of #1 (Strong Buy), while BlackBerry 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 KT has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

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.

KT currently has a forward P/E ratio of 8.06, while BB has a forward P/E of 89.81. We also note that KT has a PEG ratio of 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BB currently has a PEG ratio of 1.73.

Another notable valuation metric for KT is its P/B ratio of 0.41. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BB has a P/B of 1.39.

These are just a few of the metrics contributing to KT's Value grade of A and BB's Value grade of F.

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


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