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Investors interested in stocks from the Wireless Non-US sector have probably already heard of KT Corp. (KT) and TeliaSonera AB (TLSNY). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
KT Corp. and TeliaSonera AB are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that KT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
KT currently has a forward P/E ratio of 6.31, while TLSNY has a forward P/E of 18.23. We also note that KT has a PEG ratio of 0.36. 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. TLSNY currently has a PEG ratio of 3.12.
Another notable valuation metric for KT is its P/B ratio of 0.66. 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, TLSNY has a P/B of 2.23.
These metrics, and several others, help KT earn a Value grade of A, while TLSNY has been given a Value grade of C.
KT sticks out from TLSNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that KT is the better option right now.
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KT Corporation (KT) : Free Stock Analysis Report
TeliaSonera AB (TLSNY) : Free Stock Analysis Report