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VOD vs. CRNT: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Wireless Non-US sector might want to consider either Vodafone Group PLC (VOD - Free Report) or Ceragon Networks (CRNT - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vodafone Group PLC is sporting a Zacks Rank of #2 (Buy), while Ceragon Networks 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 VOD has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
VOD currently has a forward P/E ratio of 12.93, while CRNT has a forward P/E of 85.20. We also note that VOD has a PEG ratio of 4.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRNT currently has a PEG ratio of 5.68.
Another notable valuation metric for VOD is its P/B ratio of 0.68. 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, CRNT has a P/B of 1.29.
These metrics, and several others, help VOD earn a Value grade of A, while CRNT has been given a Value grade of C.
VOD stands above CRNT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VOD is the superior value option right now.
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VOD vs. CRNT: Which Stock Is the Better Value Option?
Investors looking for stocks in the Wireless Non-US sector might want to consider either Vodafone Group PLC (VOD - Free Report) or Ceragon Networks (CRNT - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vodafone Group PLC is sporting a Zacks Rank of #2 (Buy), while Ceragon Networks 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 VOD has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
VOD currently has a forward P/E ratio of 12.93, while CRNT has a forward P/E of 85.20. We also note that VOD has a PEG ratio of 4.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CRNT currently has a PEG ratio of 5.68.
Another notable valuation metric for VOD is its P/B ratio of 0.68. 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, CRNT has a P/B of 1.29.
These metrics, and several others, help VOD earn a Value grade of A, while CRNT has been given a Value grade of C.
VOD stands above CRNT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VOD is the superior value option right now.