SUPV or BSBR: Which Is the Better Value Stock Right Now?

BSBR SUPV

Investors with an interest in Banks - Foreign stocks have likely encountered both Grupo Supervielle (SUPV - Free Report) and Banco Santander-Brazil (BSBR - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Grupo Supervielle has a Zacks Rank of #2 (Buy), while Banco Santander-Brazil has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SUPV likely has seen a stronger improvement to its earnings outlook than BSBR has recently. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SUPV currently has a forward P/E ratio of 4.54, while BSBR has a forward P/E of 8.77. We also note that SUPV has a PEG ratio of 2.39. 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. BSBR currently has a PEG ratio of 4.01.

Another notable valuation metric for SUPV is its P/B ratio of 0.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BSBR has a P/B of 0.90.

These metrics, and several others, help SUPV earn a Value grade of A, while BSBR has been given a Value grade of C.

SUPV 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 SUPV is likely the superior value option right now.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>