TEF vs. TU: Which Stock Is the Better Value Option?

Core Viewpoint - The article compares Telefonica (TEF) and Telus (TU) to determine which stock is more attractive to value investors, highlighting TEF's stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - TEF has a forward P/E ratio of 14.22, while TU has a forward P/E of 21.25, indicating that TEF is potentially undervalued compared to TU [5]. - TEF's PEG ratio is 0.83, suggesting a favorable valuation in relation to its expected earnings growth, whereas TU's PEG ratio is significantly higher at 5.05 [5]. - TEF's P/B ratio stands at 1.2, compared to TU's P/B of 2.08, further indicating TEF's relative undervaluation [6]. Earnings Outlook - TEF is noted for having an improving earnings outlook, which contributes to its higher Zacks Rank of 2 (Buy), compared to TU's Zacks Rank of 3 (Hold) [3][7].