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.
DTEGY vs. TU: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors with an interest in Diversified Communication Services stocks have likely encountered both Deutsche Telekom AG (DTEGY - Free Report) and Telus (TU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Deutsche Telekom AG and Telus are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DTEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
DTEGY currently has a forward P/E ratio of 16.60, while TU has a forward P/E of 21.28. We also note that DTEGY has a PEG ratio of 1.51. 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. TU currently has a PEG ratio of 5.06.
Another notable valuation metric for DTEGY is its P/B ratio of 1.81. 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, TU has a P/B of 2.07.
Based on these metrics and many more, DTEGY holds a Value grade of A, while TU has a Value grade of C.
DTEGY stands above TU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DTEGY vs. TU: Which Stock Is the Better Value Option?
Investors with an interest in Diversified Communication Services stocks have likely encountered both Deutsche Telekom AG (DTEGY - Free Report) and Telus (TU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Deutsche Telekom AG and Telus are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DTEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
DTEGY currently has a forward P/E ratio of 16.60, while TU has a forward P/E of 21.28. We also note that DTEGY has a PEG ratio of 1.51. 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. TU currently has a PEG ratio of 5.06.
Another notable valuation metric for DTEGY is its P/B ratio of 1.81. 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, TU has a P/B of 2.07.
Based on these metrics and many more, DTEGY holds a Value grade of A, while TU has a Value grade of C.
DTEGY stands above TU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DTEGY is the superior value option right now.