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EBKDY or NABZY: Which Is the Better Value Stock Right Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Erste Group Bank AG (EBKDY - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Erste Group Bank AG has a Zacks Rank of #1 (Strong Buy), while National Australia Bank Ltd. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EBKDY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

EBKDY currently has a forward P/E ratio of 5.40, while NABZY has a forward P/E of 13.49. We also note that EBKDY has a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NABZY currently has a PEG ratio of 2.10.

Another notable valuation metric for EBKDY is its P/B ratio of 0.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NABZY has a P/B of 1.58.

These are just a few of the metrics contributing to EBKDY's Value grade of B and NABZY's Value grade of D.

EBKDY sticks out from NABZY in both our Zacks Rank and Style Scores models, so value investors will likely feel that EBKDY is the better option right now.


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National Australia Bank Ltd. (NABZY) - free report >>

Erste Group Bank AG (EBKDY) - free report >>

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