TMUS or PWFL: Which Is the Better Value Stock Right Now?
Investors interested in Wireless National stocks are likely familiar with T-Mobile (TMUS) and I.D. Systems (PWFL). 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.
Currently, T-Mobile has a Zacks Rank of #2 (Buy), while I.D. Systems has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TMUS likely has seen a stronger improvement to its earnings outlook than PWFL has recently. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TMUS currently has a forward P/E ratio of 19.01, while PWFL has a forward P/E of 57.27. We also note that TMUS has a PEG ratio of 1.54. 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. PWFL currently has a PEG ratio of 1.91.
Another notable valuation metric for TMUS is its P/B ratio of 2.46. 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, PWFL has a P/B of 4.12.
These are just a few of the metrics contributing to TMUS's Value grade of B and PWFL's Value grade of F.
TMUS has seen stronger estimate revision activity and sports more attractive valuation metrics than PWFL, so it seems like value investors will conclude that TMUS is the superior option right now.
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T-Mobile US, Inc. (TMUS): Free Stock Analysis Report
I.D. Systems, Inc. (PWFL): Free Stock Analysis Report
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