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VIV vs. BCE: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Diversified Communication Services sector might want to consider either Telefonica Brasil (VIV - Free Report) or 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Telefonica Brasil has a Zacks Rank of #2 (Buy), while BCE 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 VIV has an improving earnings outlook. But this is just one piece of the puzzle 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VIV currently has a forward P/E ratio of 15.82, while BCE has a forward P/E of 20.27. We also note that VIV has a PEG ratio of 3.41. 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 6.03.
Another notable valuation metric for VIV 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 3.05.
Based on these metrics and many more, VIV holds a Value grade of A, while BCE has a Value grade of C.
VIV stands above BCE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VIV is the superior value option right now.
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VIV vs. BCE: Which Stock Is the Better Value Option?
Investors looking for stocks in the Diversified Communication Services sector might want to consider either Telefonica Brasil (VIV - Free Report) or 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Telefonica Brasil has a Zacks Rank of #2 (Buy), while BCE 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 VIV has an improving earnings outlook. But this is just one piece of the puzzle 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VIV currently has a forward P/E ratio of 15.82, while BCE has a forward P/E of 20.27. We also note that VIV has a PEG ratio of 3.41. 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 6.03.
Another notable valuation metric for VIV 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 3.05.
Based on these metrics and many more, VIV holds a Value grade of A, while BCE has a Value grade of C.
VIV stands above BCE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VIV is the superior value option right now.