VIV or CHT: Which Is the Better Value Stock Right Now?

Investors with an interest in Diversified Communication Services stocks have likely encountered both Telefonica Brasil (VIV) and Chunghwa (CHT). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Telefonica Brasil is sporting a Zacks Rank of #1 (Strong Buy), while Chunghwa has a Zacks Rank of #3 (Hold). This means that VIV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

VIV currently has a forward P/E ratio of 19.00, while CHT has a forward P/E of 25.43. We also note that VIV has a PEG ratio of 0.88. 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. CHT currently has a PEG ratio of 5.40.

Another notable valuation metric for VIV is its P/B ratio of 2.03. 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, CHT has a P/B of 2.54.

These metrics, and several others, help VIV earn a Value grade of B, while CHT has been given a Value grade of D.

VIV sticks out from CHT in both our Zacks Rank and Style Scores models, so value investors will likely feel that VIV is the better option right now.

Quantum Computing Stocks Set To Soar

Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.

Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power , you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research