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DTEGY vs. TU: Which Stock Is the Better Value Option?
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Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY - Free Report) and Telus (TU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Deutsche Telekom AG is sporting a Zacks Rank of #2 (Buy), while Telus has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DTEGY likely has seen a stronger improvement to its earnings outlook than TU has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
DTEGY currently has a forward P/E ratio of 13.17, while TU has a forward P/E of 26.10. We also note that DTEGY has a PEG ratio of 1.55. 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. TU currently has a PEG ratio of 3.77.
Another notable valuation metric for DTEGY is its P/B ratio of 1.13. 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, TU has a P/B of 2.10.
Based on these metrics and many more, DTEGY holds a Value grade of B, while TU has a Value grade of C.
DTEGY has seen stronger estimate revision activity and sports more attractive valuation metrics than TU, so it seems like value investors will conclude that DTEGY is the superior option right now.
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DTEGY vs. TU: Which Stock Is the Better Value Option?
Investors interested in Diversified Communication Services stocks are likely familiar with Deutsche Telekom AG (DTEGY - Free Report) and Telus (TU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Deutsche Telekom AG is sporting a Zacks Rank of #2 (Buy), while Telus has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DTEGY likely has seen a stronger improvement to its earnings outlook than TU has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
DTEGY currently has a forward P/E ratio of 13.17, while TU has a forward P/E of 26.10. We also note that DTEGY has a PEG ratio of 1.55. 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. TU currently has a PEG ratio of 3.77.
Another notable valuation metric for DTEGY is its P/B ratio of 1.13. 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, TU has a P/B of 2.10.
Based on these metrics and many more, DTEGY holds a Value grade of B, while TU has a Value grade of C.
DTEGY has seen stronger estimate revision activity and sports more attractive valuation metrics than TU, so it seems like value investors will conclude that DTEGY is the superior option right now.