Yahoo Finance 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 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 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 #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VIVHY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 11.88, while TU has a forward P/E of 21.87. We also note that VIVHY has a PEG ratio of 1. 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 2.03.
Another notable valuation metric for VIVHY is its P/B ratio of 0.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TU has a P/B of 1.91.
These are just a few of the metrics contributing to VIVHY's Value grade of B and TU's Value grade of C.
VIVHY 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 VIVHY is likely the superior value option right now.
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Vivendi SA (VIVHY) : Free Stock Analysis Report
TELUS Corporation (TU) : Free Stock Analysis Report
