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HSBC vs. NABZY: Which Stock Is the Better Value Option?
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Investors interested in Banks - Foreign stocks are likely familiar with HSBC (HSBC - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, HSBC is sporting a Zacks Rank of #2 (Buy), while National Australia Bank Ltd. has a Zacks Rank of #4 (Sell). This means that HSBC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HSBC currently has a forward P/E ratio of 7.30, while NABZY has a forward P/E of 12.99. We also note that HSBC has a PEG ratio of 0.35. 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. NABZY currently has a PEG ratio of 1.11.
Another notable valuation metric for HSBC is its P/B ratio of 0.57. 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, NABZY has a P/B of 1.49.
Based on these metrics and many more, HSBC holds a Value grade of A, while NABZY has a Value grade of F.
HSBC stands above NABZY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HSBC is the superior value option right now.
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HSBC vs. NABZY: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with HSBC (HSBC - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, HSBC is sporting a Zacks Rank of #2 (Buy), while National Australia Bank Ltd. has a Zacks Rank of #4 (Sell). This means that HSBC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HSBC currently has a forward P/E ratio of 7.30, while NABZY has a forward P/E of 12.99. We also note that HSBC has a PEG ratio of 0.35. 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. NABZY currently has a PEG ratio of 1.11.
Another notable valuation metric for HSBC is its P/B ratio of 0.57. 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, NABZY has a P/B of 1.49.
Based on these metrics and many more, HSBC holds a Value grade of A, while NABZY has a Value grade of F.
HSBC stands above NABZY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HSBC is the superior value option right now.