VIVHY vs. TU: Which Stock Is the Better Value Option?
Investors with an interest in Diversified Communication Services stocks have likely encountered both Vivendi SA (VIVHY) and Telus (TU). 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 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.
Currently, Vivendi SA has a Zacks Rank of #2 (Buy), while Telus has a Zacks Rank of #3 (Hold). 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 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.
VIVHY currently has a forward P/E ratio of 14.18, while TU has a forward P/E of 27.47. We also note that VIVHY has a PEG ratio of 0.82. 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. TU currently has a PEG ratio of 2.96.
Another notable valuation metric for VIVHY is its P/B ratio of 0.55. 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, TU has a P/B of 2.81.
These metrics, and several others, help VIVHY earn a Value grade of B, while TU has been given a Value grade of C.
VIVHY sticks out from TU 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
TELUS Corporation (TU) : Free Stock Analysis Report
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