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DTEGY vs. TLSYY: Which Stock Is the Better Value Option?
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Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY - Free Report) and Telstra Corp. . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Deutsche Telekom AG is sporting a Zacks Rank of #2 (Buy), while Telstra Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTEGY has an improving earnings outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DTEGY currently has a forward P/E ratio of 13.92, while TLSYY has a forward P/E of 23.23. We also note that DTEGY has a PEG ratio of 4.48. 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. TLSYY currently has a PEG ratio of 6.28.
Another notable valuation metric for DTEGY is its P/B ratio of 1.02. 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, TLSYY has a P/B of 2.96.
Based on these metrics and many more, DTEGY holds a Value grade of A, while TLSYY has a Value grade of C.
DTEGY stands above TLSYY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.
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DTEGY vs. TLSYY: Which Stock Is the Better Value Option?
Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY - Free Report) and Telstra Corp. . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Deutsche Telekom AG is sporting a Zacks Rank of #2 (Buy), while Telstra Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTEGY has an improving earnings outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DTEGY currently has a forward P/E ratio of 13.92, while TLSYY has a forward P/E of 23.23. We also note that DTEGY has a PEG ratio of 4.48. 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. TLSYY currently has a PEG ratio of 6.28.
Another notable valuation metric for DTEGY is its P/B ratio of 1.02. 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, TLSYY has a P/B of 2.96.
Based on these metrics and many more, DTEGY holds a Value grade of A, while TLSYY has a Value grade of C.
DTEGY stands above TLSYY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.