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KT vs. BB: Which Stock Is the Better Value Option?

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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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, KT Corp. has a Zacks Rank of #2 (Buy), while BlackBerry has a Zacks Rank of #3 (Hold). This means that KT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

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.

KT currently has a forward P/E ratio of 8.76, while BB has a forward P/E of 101.05. We also note that KT has a PEG ratio of 0.62. 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 5.44.

Another notable valuation metric for KT is its P/B ratio of 0.45. 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, BB has a P/B of 1.99.

These metrics, and several others, help KT earn a Value grade of A, while BB has been given a Value grade of C.

KT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KT is likely the superior value option right now.


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