We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CMTL or QCOM: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Wireless Equipment stocks have likely encountered both Comtech Telecommunications (CMTL - Free Report) and Qualcomm (QCOM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Comtech Telecommunications has a Zacks Rank of #2 (Buy), while Qualcomm 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 CMTL has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 7.75, while QCOM has a forward P/E of 15.93. We also note that CMTL has a PEG ratio of 0.97. 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. QCOM currently has a PEG ratio of 1.40.
Another notable valuation metric for CMTL is its P/B ratio of 0.30. 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, QCOM has a P/B of 7.86.
Based on these metrics and many more, CMTL holds a Value grade of B, while QCOM has a Value grade of C.
CMTL has seen stronger estimate revision activity and sports more attractive valuation metrics than QCOM, so it seems like value investors will conclude that CMTL is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CMTL or QCOM: Which Is the Better Value Stock Right Now?
Investors with an interest in Wireless Equipment stocks have likely encountered both Comtech Telecommunications (CMTL - Free Report) and Qualcomm (QCOM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Comtech Telecommunications has a Zacks Rank of #2 (Buy), while Qualcomm 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 CMTL has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 7.75, while QCOM has a forward P/E of 15.93. We also note that CMTL has a PEG ratio of 0.97. 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. QCOM currently has a PEG ratio of 1.40.
Another notable valuation metric for CMTL is its P/B ratio of 0.30. 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, QCOM has a P/B of 7.86.
Based on these metrics and many more, CMTL holds a Value grade of B, while QCOM has a Value grade of C.
CMTL has seen stronger estimate revision activity and sports more attractive valuation metrics than QCOM, so it seems like value investors will conclude that CMTL is the superior option right now.