Back to top

Image: Bigstock

VIVHY vs. BCE: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Diversified Communication Services stocks have likely encountered both Vivendi SA (VIVHY - Free Report) and BCE (BCE - Free Report) . 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.

Vivendi SA has a Zacks Rank of #2 (Buy), while BCE has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VIVHY has an improving earnings outlook. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

VIVHY currently has a forward P/E ratio of 14.51, while BCE has a forward P/E of 18.58. We also note that VIVHY has a PEG ratio of 1.25. 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 5.21.

Another notable valuation metric for VIVHY is its P/B ratio of 0.57. 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 2.83.

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

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BCE, Inc. (BCE) - free report >>

Vivendi SA (VIVHY) - free report >>

Published in