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CMTL or MSI: Which Is the Better Value Stock Right Now?
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Investors interested in Wireless Equipment stocks are likely familiar with Comtech Telecommunications (CMTL - Free Report) and 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Comtech Telecommunications and Motorola are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CMTL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CMTL currently has a forward P/E ratio of 6.76, while MSI has a forward P/E of 27.82. We also note that CMTL has a PEG ratio of 0.85. 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. MSI currently has a PEG ratio of 2.81.
Another notable valuation metric for CMTL is its P/B ratio of 0.57. 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, MSI has a P/B of 143.24.
These are just a few of the metrics contributing to CMTL's Value grade of A and MSI's Value grade of D.
CMTL sticks out from MSI in both our Zacks Rank and Style Scores models, so value investors will likely feel that CMTL is the better option right now.
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CMTL or MSI: Which Is the Better Value Stock Right Now?
Investors interested in Wireless Equipment stocks are likely familiar with Comtech Telecommunications (CMTL - Free Report) and 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Comtech Telecommunications and Motorola are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CMTL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CMTL currently has a forward P/E ratio of 6.76, while MSI has a forward P/E of 27.82. We also note that CMTL has a PEG ratio of 0.85. 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. MSI currently has a PEG ratio of 2.81.
Another notable valuation metric for CMTL is its P/B ratio of 0.57. 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, MSI has a P/B of 143.24.
These are just a few of the metrics contributing to CMTL's Value grade of A and MSI's Value grade of D.
CMTL sticks out from MSI in both our Zacks Rank and Style Scores models, so value investors will likely feel that CMTL is the better option right now.