Yahoo Finance VIVHY or DTEGY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Diversified Communication Services sector have probably already heard of Vivendi SA (VIVHY) and Deutsche Telekom AG (DTEGY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Vivendi SA has a Zacks Rank of #2 (Buy), while Deutsche Telekom AG has a Zacks Rank of #3 (Hold) right now. This means that VIVHY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
VIVHY currently has a forward P/E ratio of 11.97, while DTEGY has a forward P/E of 12.66. We also note that VIVHY has a PEG ratio of 0.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DTEGY currently has a PEG ratio of 1.12.
Another notable valuation metric for VIVHY is its P/B ratio of 0.60. 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, DTEGY has a P/B of 1.12.
Based on these metrics and many more, VIVHY holds a Value grade of B, while DTEGY has a Value grade of C.
VIVHY sticks out from DTEGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that VIVHY is the better option right now.
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Vivendi SA (VIVHY) : Free Stock Analysis Report
Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report
