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VIV or SCMWY: Which Is the Better Value Stock Right Now?
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Investors with an interest in Diversified Communication Services stocks have likely encountered both Telefonica Brasil (VIV - Free Report) and Swisscom AG (SCMWY - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Telefonica Brasil and Swisscom AG are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
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.
VIV currently has a forward P/E ratio of 15.35, while SCMWY has a forward P/E of 17. We also note that VIV has a PEG ratio of 3.37. 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. SCMWY currently has a PEG ratio of 7.17.
Another notable valuation metric for VIV is its P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 28.81.
These are just a few of the metrics contributing to VIV's Value grade of A and SCMWY's Value grade of F.
Both VIV and SCMWY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VIV is the superior value option right now.
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VIV or SCMWY: Which Is the Better Value Stock Right Now?
Investors with an interest in Diversified Communication Services stocks have likely encountered both Telefonica Brasil (VIV - Free Report) and Swisscom AG (SCMWY - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Telefonica Brasil and Swisscom AG are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
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.
VIV currently has a forward P/E ratio of 15.35, while SCMWY has a forward P/E of 17. We also note that VIV has a PEG ratio of 3.37. 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. SCMWY currently has a PEG ratio of 7.17.
Another notable valuation metric for VIV is its P/B ratio of 1.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 28.81.
These are just a few of the metrics contributing to VIV's Value grade of A and SCMWY's Value grade of F.
Both VIV and SCMWY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VIV is the superior value option right now.