Yahoo Finance BDORY vs. SVNLY: Which Stock Should Value Investors Buy Now?
Investors interested in Banks - Foreign stocks are likely familiar with Banco Do Brasil SA (BDORY) and Svenska Handelsbanken Ab Publ (SVNLY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Banco Do Brasil SA has a Zacks Rank of #2 (Buy), while Svenska Handelsbanken Ab Publ has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BDORY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
BDORY currently has a forward P/E ratio of 3.85, while SVNLY has a forward P/E of 8.30. We also note that BDORY has a PEG ratio of 0.86. 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. SVNLY currently has a PEG ratio of 1.42.
Another notable valuation metric for BDORY is its P/B ratio of 0.84. 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, SVNLY has a P/B of 1.03.
Based on these metrics and many more, BDORY holds a Value grade of A, while SVNLY has a Value grade of C.
BDORY 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 BDORY is likely the superior value option right now.
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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
Svenska Handelsbanken Ab Publ (SVNLY) : Free Stock Analysis Report
