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ORAN vs. TSU: Which Stock Is the Better Value Option?

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Investors interested in Wireless Non-US stocks are likely familiar with Orange (ORAN - Free Report) and TIM Participacoes S.A. . 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Orange has a Zacks Rank of #2 (Buy), while TIM Participacoes S.A. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ORAN likely has seen a stronger improvement to its earnings outlook than TSU has recently. But this is just one piece of the puzzle for value investors.

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.

ORAN currently has a forward P/E ratio of 12.62, while TSU has a forward P/E of 18.51. We also note that ORAN has a PEG ratio of 1.02. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSU currently has a PEG ratio of 1.53.

Another notable valuation metric for ORAN is its P/B ratio of 1. 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, TSU has a P/B of 1.47.

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

ORAN stands above TSU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ORAN is the superior value option right now.


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