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

BNPQY NABZY

Investors interested in Banks - Foreign stocks are likely familiar with BNP Paribas SA (BNPQY - 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.

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.

BNP Paribas SA and National Australia Bank Ltd. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BNPQY 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 try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

BNPQY currently has a forward P/E ratio of 5.84, while NABZY has a forward P/E of 10.49. We also note that BNPQY has a PEG ratio of 0.33. 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 1.74.

Another notable valuation metric for BNPQY is its P/B ratio of 0.60. 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, NABZY has a P/B of 1.28.

These are just a few of the metrics contributing to BNPQY's Value grade of A and NABZY's Value grade of F.

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

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