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TIMB vs. TLSNY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Wireless Non-US sector have probably already heard of TIM S.A. Sponsored ADR (TIMB - Free Report) and TeliaSonera AB (TLSNY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TIM S.A. Sponsored ADR and TeliaSonera AB are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TIMB has an improving earnings outlook. However, value investors will care about much more than just this.

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.

TIMB currently has a forward P/E ratio of 13.23, while TLSNY has a forward P/E of 22.33. We also note that TIMB has a PEG ratio of 0.82. 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. TLSNY currently has a PEG ratio of 2.99.

Another notable valuation metric for TIMB is its P/B ratio of 2.10. 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, TLSNY has a P/B of 2.60.

These are just a few of the metrics contributing to TIMB's Value grade of A and TLSNY's Value grade of C.

TIMB sticks out from TLSNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIMB is the better option right now.


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