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ING vs. WBK: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Banks - Foreign sector might want to consider either ING Groep (ING - Free Report) or Westpac Banking Corporation . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both ING Groep and Westpac Banking Corporation are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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.
ING currently has a forward P/E ratio of 10.30, while WBK has a forward P/E of 14.11. We also note that ING has a PEG ratio of 0.42. 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. WBK currently has a PEG ratio of 0.63.
Another notable valuation metric for ING is its P/B ratio of 0.78. 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, WBK has a P/B of 1.25.
Based on these metrics and many more, ING holds a Value grade of B, while WBK has a Value grade of D.
Both ING and WBK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ING is the superior value option right now.
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ING vs. WBK: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Foreign sector might want to consider either ING Groep (ING - Free Report) or Westpac Banking Corporation . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both ING Groep and Westpac Banking Corporation are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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.
ING currently has a forward P/E ratio of 10.30, while WBK has a forward P/E of 14.11. We also note that ING has a PEG ratio of 0.42. 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. WBK currently has a PEG ratio of 0.63.
Another notable valuation metric for ING is its P/B ratio of 0.78. 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, WBK has a P/B of 1.25.
Based on these metrics and many more, ING holds a Value grade of B, while WBK has a Value grade of D.
Both ING and WBK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ING is the superior value option right now.