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CMTL vs. IDCC: Which Stock Is the Better Value Option?
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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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Comtech Telecommunications has a Zacks Rank of #1 (Strong Buy), while InterDigital has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CMTL has an improving earnings outlook. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CMTL currently has a forward P/E ratio of 30.97, while IDCC has a forward P/E of 104.16. We also note that CMTL has a PEG ratio of 6.19. 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 6.94.
Another notable valuation metric for CMTL is its P/B ratio of 1.27. 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, IDCC has a P/B of 2.44.
Based on these metrics and many more, CMTL holds a Value grade of B, while IDCC has a Value grade of D.
CMTL sticks out from IDCC in both our Zacks Rank and Style Scores models, so value investors will likely feel that CMTL is the better option right now.
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CMTL vs. IDCC: Which Stock Is the Better Value Option?
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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Comtech Telecommunications has a Zacks Rank of #1 (Strong Buy), while InterDigital has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CMTL has an improving earnings outlook. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CMTL currently has a forward P/E ratio of 30.97, while IDCC has a forward P/E of 104.16. We also note that CMTL has a PEG ratio of 6.19. 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 6.94.
Another notable valuation metric for CMTL is its P/B ratio of 1.27. 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, IDCC has a P/B of 2.44.
Based on these metrics and many more, CMTL holds a Value grade of B, while IDCC has a Value grade of D.
CMTL sticks out from IDCC in both our Zacks Rank and Style Scores models, so value investors will likely feel that CMTL is the better option right now.