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DTEGY or BCE: Which Is the Better Value Stock Right Now?

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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 stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Deutsche Telekom AG and BCE are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This means that DTEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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.

DTEGY currently has a forward P/E ratio of 11.52, while BCE has a forward P/E of 18.97. We also note that DTEGY has a PEG ratio of 0.80. 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. BCE currently has a PEG ratio of 5.32.

Another notable valuation metric for DTEGY is its P/B ratio of 1.08. 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 2.90.

These metrics, and several others, help DTEGY earn a Value grade of A, while BCE has been given a Value grade of C.

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


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