Back to top

Image: Bigstock

EBKDY vs. NABZY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

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 companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Erste Group Bank AG has a Zacks Rank of #2 (Buy), while National Australia Bank Ltd. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that EBKDY likely has seen a stronger improvement to its earnings outlook than NABZY has recently. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

EBKDY currently has a forward P/E ratio of 10.53, while NABZY has a forward P/E of 13.27. We also note that EBKDY has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NABZY currently has a PEG ratio of 0.58.

Another notable valuation metric for EBKDY is its P/B ratio of 0.62. 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 1.35.

These metrics, and several others, help EBKDY earn a Value grade of A, while NABZY has been given a 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


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

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

Published in