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COMM vs. BAND: Which Stock Should Value Investors Buy Now?

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Investors interested in Communication - Infrastructure stocks are likely familiar with CommScope (COMM - Free Report) and Bandwidth (BAND - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

CommScope has a Zacks Rank of #2 (Buy), while Bandwidth has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that COMM is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

COMM currently has a forward P/E ratio of 7.34, while BAND has a forward P/E of 452.79. We also note that COMM has a PEG ratio of 2.72. 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. BAND currently has a PEG ratio of 20.91.

Another notable valuation metric for COMM is its P/B ratio of 10.42. 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, BAND has a P/B of 12.53.

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

COMM sticks out from BAND in both our Zacks Rank and Style Scores models, so value investors will likely feel that COMM is the better option right now.


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CommScope Holding Company, Inc. (COMM) - free report >>

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