Investors looking for stocks in the Cable Television sector might want to consider either Comcast (CMCSA) or Rogers Communication (RCI). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Comcast and Rogers Communication have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.
CMCSA currently has a forward P/E ratio of 13.48, while RCI has a forward P/E of 15.41. We also note that CMCSA has a PEG ratio of 1.11. 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. RCI currently has a PEG ratio of 3.08.
Another notable valuation metric for CMCSA is its P/B ratio of 2.36. 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, RCI has a P/B of 4.45.
These are just a few of the metrics contributing to CMCSA's Value grade of B and RCI's Value grade of C.
Both CMCSA and RCI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CMCSA is the superior value option right now.
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Comcast Corporation (CMCSA) : Free Stock Analysis Report
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