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ORAN vs. TIMB: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Wireless Non-US sector might want to consider either Orange (ORAN - Free Report) or TIM S.A. Sponsored ADR (TIMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Orange is sporting a Zacks Rank of #2 (Buy), while TIM S.A. Sponsored ADR 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 ORAN has an improving earnings outlook. But this is only part of the picture 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.
ORAN currently has a forward P/E ratio of 8.87, while TIMB has a forward P/E of 18.78. We also note that ORAN has a PEG ratio of 0.62. 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. TIMB currently has a PEG ratio of 1.69.
Another notable valuation metric for ORAN is its P/B ratio of 0.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TIMB has a P/B of 1.44.
Based on these metrics and many more, ORAN holds a Value grade of A, while TIMB has a Value grade of C.
ORAN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ORAN is likely the superior value option right now.
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ORAN vs. TIMB: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Wireless Non-US sector might want to consider either Orange (ORAN - Free Report) or TIM S.A. Sponsored ADR (TIMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Orange is sporting a Zacks Rank of #2 (Buy), while TIM S.A. Sponsored ADR 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 ORAN has an improving earnings outlook. But this is only part of the picture 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.
ORAN currently has a forward P/E ratio of 8.87, while TIMB has a forward P/E of 18.78. We also note that ORAN has a PEG ratio of 0.62. 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. TIMB currently has a PEG ratio of 1.69.
Another notable valuation metric for ORAN is its P/B ratio of 0.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TIMB has a P/B of 1.44.
Based on these metrics and many more, ORAN holds a Value grade of A, while TIMB has a Value grade of C.
ORAN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ORAN is likely the superior value option right now.