Yahoo Finance ORAN or SKM: Which Is the Better Value Stock Right Now?
Investors interested in Wireless Non-US stocks are likely familiar with Orange (ORAN) and SK Telecom (SKM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Orange is sporting a Zacks Rank of #2 (Buy), while SK Telecom has a Zacks Rank of #4 (Sell). This means that ORAN'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.
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.
ORAN currently has a forward P/E ratio of 8.19, while SKM has a forward P/E of 9.73. We also note that ORAN has a PEG ratio of 0.51. 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. SKM currently has a PEG ratio of 4.30.
Another notable valuation metric for ORAN is its P/B ratio of 0.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SKM has a P/B of 0.89.
Based on these metrics and many more, ORAN holds a Value grade of B, while SKM has a Value grade of C.
ORAN sticks out from SKM in both our Zacks Rank and Style Scores models, so value investors will likely feel that ORAN is the better option right now.
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Orange (ORAN) : Free Stock Analysis Report
SK Telecom Co., Ltd. (SKM) : Free Stock Analysis Report
