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TKC vs. AMX: Which Stock Should Value Investors Buy Now?
Investors interested in Wireless Non-US stocks are likely familiar with Turkcell Iletisim Hizmetleri AS (TKC - Free Report) and Amer Movil (AMX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Turkcell Iletisim Hizmetleri AS and Amer Movil are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that TKC likely has seen a stronger improvement to its earnings outlook than AMX has recently. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TKC currently has a forward P/E ratio of 6.21, while AMX has a forward P/E of 11.91. We also note that TKC has a PEG ratio of 0.20. 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. AMX currently has a PEG ratio of 0.60.
Another notable valuation metric for TKC is its P/B ratio of 1.48. 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, AMX has a P/B of 3.89.
These are just a few of the metrics contributing to TKC's Value grade of A and AMX's Value grade of C.
TKC sticks out from AMX in both our Zacks Rank and Style Scores models, so value investors will likely feel that TKC is the better option right now.