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CMTL vs. IDCC: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Wireless Equipment sector have probably already heard of Comtech Telecommunications (CMTL - Free Report) and InterDigital (IDCC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Comtech Telecommunications has a Zacks Rank of #1 (Strong Buy), while InterDigital has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CMTL likely has seen a stronger improvement to its earnings outlook than IDCC has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
CMTL currently has a forward P/E ratio of 28.48, while IDCC has a forward P/E of 91.28. We also note that CMTL has a PEG ratio of 5.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IDCC currently has a PEG ratio of 6.09.
Another notable valuation metric for CMTL is its P/B ratio of 1.60. 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, IDCC has a P/B of 2.76.
These are just a few of the metrics contributing to CMTL's Value grade of B and IDCC's Value grade of F.
CMTL stands above IDCC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CMTL is the superior value option right now.
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CMTL vs. IDCC: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Wireless Equipment sector have probably already heard of Comtech Telecommunications (CMTL - Free Report) and InterDigital (IDCC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Comtech Telecommunications has a Zacks Rank of #1 (Strong Buy), while InterDigital has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CMTL likely has seen a stronger improvement to its earnings outlook than IDCC has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
CMTL currently has a forward P/E ratio of 28.48, while IDCC has a forward P/E of 91.28. We also note that CMTL has a PEG ratio of 5.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IDCC currently has a PEG ratio of 6.09.
Another notable valuation metric for CMTL is its P/B ratio of 1.60. 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, IDCC has a P/B of 2.76.
These are just a few of the metrics contributing to CMTL's Value grade of B and IDCC's Value grade of F.
CMTL stands above IDCC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CMTL is the superior value option right now.