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KT vs. BB: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Wireless Non-US stocks have likely encountered both KT Corp. (KT - Free Report) and BlackBerry (BB - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

KT Corp. and BlackBerry are both sporting a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

KT currently has a forward P/E ratio of 10.88, while BB has a forward P/E of 84.91. We also note that KT has a PEG ratio of 1.03. 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. BB currently has a PEG ratio of 4.57.

Another notable valuation metric for KT is its P/B ratio of 0.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BB has a P/B of 2.06.

Based on these metrics and many more, KT holds a Value grade of A, while BB has a Value grade of C.

Both KT and BB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KT is the superior value option right now.


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