DTEGY or CHT: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Diversified Communication Services sector might want to consider either Deutsche Telekom AG (DTEGY) or Chunghwa (CHT). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Deutsche Telekom AG and Chunghwa have a Zacks Rank of # 2 (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. 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 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.
DTEGY currently has a forward P/E ratio of 14.81, while CHT has a forward P/E of 26.30. We also note that DTEGY has a PEG ratio of 1.24. 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. CHT currently has a PEG ratio of 18.92.
Another notable valuation metric for DTEGY is its P/B ratio of 1.45. 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, CHT has a P/B of 2.61.
These are just a few of the metrics contributing to DTEGY's Value grade of A and CHT's Value grade of D.
Both DTEGY and CHT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DTEGY is the superior value option right now.
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Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report
Chunghwa Telecom Co., Ltd. (CHT) : Free Stock Analysis Report