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DTEGY vs. BCE: 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 BCE (BCE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while BCE has a Zacks Rank of #3 (Hold). This means that DTEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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 11.43, while BCE has a forward P/E of 17.65. We also note that DTEGY has a PEG ratio of 0.81. 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. BCE currently has a PEG ratio of 3.67.
Another notable valuation metric for DTEGY is its P/B ratio of 1.02. 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, BCE has a P/B of 2.80.
These are just a few of the metrics contributing to DTEGY's Value grade of A and BCE's Value grade of C.
DTEGY stands above BCE 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. BCE: 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 BCE (BCE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while BCE has a Zacks Rank of #3 (Hold). This means that DTEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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 11.43, while BCE has a forward P/E of 17.65. We also note that DTEGY has a PEG ratio of 0.81. 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. BCE currently has a PEG ratio of 3.67.
Another notable valuation metric for DTEGY is its P/B ratio of 1.02. 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, BCE has a P/B of 2.80.
These are just a few of the metrics contributing to DTEGY's Value grade of A and BCE's Value grade of C.
DTEGY stands above BCE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.