U.S. markets closed
  • S&P Futures

    4,285.00
    -1.50 (-0.03%)
     
  • Dow Futures

    33,980.00
    -1.00 (-0.00%)
     
  • Nasdaq Futures

    13,522.50
    -0.75 (-0.01%)
     
  • Russell 2000 Futures

    1,999.00
    -2.70 (-0.13%)
     
  • Crude Oil

    90.74
    +0.24 (+0.27%)
     
  • Gold

    1,771.80
    +0.60 (+0.03%)
     
  • Silver

    19.43
    -0.03 (-0.17%)
     
  • EUR/USD

    1.0088
    -0.0004 (-0.04%)
     
  • 10-Yr Bond

    2.8800
    -0.0130 (-0.45%)
     
  • Vix

    19.56
    -0.34 (-1.71%)
     
  • GBP/USD

    1.1925
    -0.0008 (-0.07%)
     
  • USD/JPY

    136.0760
    +0.2140 (+0.16%)
     
  • BTC-USD

    23,172.58
    -205.22 (-0.88%)
     
  • CMC Crypto 200

    550.66
    -7.07 (-1.27%)
     
  • FTSE 100

    7,541.85
    +26.10 (+0.35%)
     
  • Nikkei 225

    28,942.14
    0.00 (0.00%)
     

KT vs. PHI: Which Stock Should Value Investors Buy Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors with an interest in Wireless Non-US stocks have likely encountered both KT Corp. (KT) and PLDT (PHI). 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.

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.

KT Corp. has a Zacks Rank of #2 (Buy), while PLDT has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KT has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

KT currently has a forward P/E ratio of 6.21, while PHI has a forward P/E of 13.15. We also note that KT has a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PHI currently has a PEG ratio of 2.44.

Another notable valuation metric for KT is its P/B ratio of 0.46. 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, PHI has a P/B of 2.93.

These are just a few of the metrics contributing to KT's Value grade of B and PHI's Value grade of C.

KT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KT is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.