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.
TIIAY vs. SCMWY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Diversified Communication Services stocks are likely familiar with Telecom Italia (TIIAY - Free Report) and Swisscom AG (SCMWY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Telecom Italia and Swisscom AG are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that TIIAY'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 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 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.
TIIAY currently has a forward P/E ratio of 24.23, while SCMWY has a forward P/E of 26.50. We also note that TIIAY has a PEG ratio of 0.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCMWY currently has a PEG ratio of 2.06.
Another notable valuation metric for TIIAY is its P/B ratio of 1.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 30.16.
These are just a few of the metrics contributing to TIIAY's Value grade of B and SCMWY's Value grade of F.
TIIAY stands above SCMWY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TIIAY is the superior value option right now.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
TIIAY vs. SCMWY: Which Stock Is the Better Value Option?
Investors interested in Diversified Communication Services stocks are likely familiar with Telecom Italia (TIIAY - Free Report) and Swisscom AG (SCMWY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Telecom Italia and Swisscom AG are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that TIIAY'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 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 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.
TIIAY currently has a forward P/E ratio of 24.23, while SCMWY has a forward P/E of 26.50. We also note that TIIAY has a PEG ratio of 0.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCMWY currently has a PEG ratio of 2.06.
Another notable valuation metric for TIIAY is its P/B ratio of 1.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 30.16.
These are just a few of the metrics contributing to TIIAY's Value grade of B and SCMWY's Value grade of F.
TIIAY stands above SCMWY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TIIAY is the superior value option right now.