Yahoo Finance KB vs. NRDBY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of KB Financial (KB) and Nordea Bank AB (NRDBY). But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Right now, KB Financial is sporting a Zacks Rank of #2 (Buy), while Nordea Bank AB has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KB likely has seen a stronger improvement to its earnings outlook than NRDBY has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
KB currently has a forward P/E ratio of 6.01, while NRDBY has a forward P/E of 8.16. We also note that KB has a PEG ratio of 0.42. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NRDBY currently has a PEG ratio of 0.78.
Another notable valuation metric for KB is its P/B ratio of 0.48. 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, NRDBY has a P/B of 1.38.
Based on these metrics and many more, KB holds a Value grade of A, while NRDBY has a Value grade of D.
KB 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 KB is likely the superior value option right now.
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KB Financial Group Inc (KB) : Free Stock Analysis Report
Nordea Bank AB (NRDBY) : Free Stock Analysis Report
