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TLK or SCMWY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Diversified Communication Services sector have probably already heard of PT Telekomunikasi (TLK - Free Report) and Swisscom AG (SCMWY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, PT Telekomunikasi is sporting a Zacks Rank of #2 (Buy), while Swisscom AG has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TLK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
TLK currently has a forward P/E ratio of 14.58, while SCMWY has a forward P/E of 15.16. We also note that TLK has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCMWY currently has a PEG ratio of 6.40.
Another notable valuation metric for TLK is its P/B ratio of 2.31. 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 23.35.
These metrics, and several others, help TLK earn a Value grade of B, while SCMWY has been given a Value grade of F.
TLK 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 TLK is likely the superior value option right now.
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TLK or SCMWY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Diversified Communication Services sector have probably already heard of PT Telekomunikasi (TLK - Free Report) and Swisscom AG (SCMWY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, PT Telekomunikasi is sporting a Zacks Rank of #2 (Buy), while Swisscom AG has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TLK is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
TLK currently has a forward P/E ratio of 14.58, while SCMWY has a forward P/E of 15.16. We also note that TLK has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCMWY currently has a PEG ratio of 6.40.
Another notable valuation metric for TLK is its P/B ratio of 2.31. 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 23.35.
These metrics, and several others, help TLK earn a Value grade of B, while SCMWY has been given a Value grade of F.
TLK 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 TLK is likely the superior value option right now.