Yahoo Finance NTTYY vs. SCMWY: Which Stock Is the Better Value Option?
Investors interested in Diversified Communication Services stocks are likely familiar with NTT (NTTYY) and Swisscom AG (SCMWY). But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
NTT and Swisscom AG are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that NTTYY likely has seen a stronger improvement to its earnings outlook than SCMWY has recently. But this is only part of the picture for value investors.
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 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.
NTTYY currently has a forward P/E ratio of 10.88, while SCMWY has a forward P/E of 17.33. We also note that NTTYY has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCMWY currently has a PEG ratio of 7.31.
Another notable valuation metric for NTTYY is its P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SCMWY has a P/B of 25.66.
These are just a few of the metrics contributing to NTTYY's Value grade of B and SCMWY's Value grade of F.
NTTYY has seen stronger estimate revision activity and sports more attractive valuation metrics than SCMWY, so it seems like value investors will conclude that NTTYY is the superior option right now.
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Nippon Telegraph and Telephone Corporation (NTTYY) : Free Stock Analysis Report
Swisscom AG (SCMWY) : Free Stock Analysis Report
