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CMTL vs. MSI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Wireless Equipment sector might want to consider either Comtech Telecommunications (CMTL - Free Report) or Motorola (MSI - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Comtech Telecommunications is sporting a Zacks Rank of #2 (Buy), while Motorola has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CMTL 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 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.
CMTL currently has a forward P/E ratio of 9.76, while MSI has a forward P/E of 26.53. We also note that CMTL has a PEG ratio of 1.22. 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. MSI currently has a PEG ratio of 2.68.
Another notable valuation metric for CMTL is its P/B ratio of 0.81. 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, MSI has a P/B of 135.28.
These metrics, and several others, help CMTL earn a Value grade of B, while MSI has been given a Value grade of F.
CMTL 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 CMTL is likely the superior value option right now.
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CMTL vs. MSI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Wireless Equipment sector might want to consider either Comtech Telecommunications (CMTL - Free Report) or Motorola (MSI - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Comtech Telecommunications is sporting a Zacks Rank of #2 (Buy), while Motorola has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CMTL 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 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.
CMTL currently has a forward P/E ratio of 9.76, while MSI has a forward P/E of 26.53. We also note that CMTL has a PEG ratio of 1.22. 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. MSI currently has a PEG ratio of 2.68.
Another notable valuation metric for CMTL is its P/B ratio of 0.81. 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, MSI has a P/B of 135.28.
These metrics, and several others, help CMTL earn a Value grade of B, while MSI has been given a Value grade of F.
CMTL 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 CMTL is likely the superior value option right now.