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MFG vs. NABZY: Which Stock Is the Better Value Option?
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Investors interested in Banks - Foreign stocks are likely familiar with Mizuho (MFG - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Mizuho and National Australia Bank Ltd. are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
MFG currently has a forward P/E ratio of 7.38, while NABZY has a forward P/E of 14.08. We also note that MFG has a PEG ratio of 0.77. 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 1.77.
Another notable valuation metric for MFG is its P/B ratio of 0.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NABZY has a P/B of 1.49.
These are just a few of the metrics contributing to MFG's Value grade of B and NABZY's Value grade of D.
Both MFG and NABZY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MFG is the superior value option right now.
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MFG vs. NABZY: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with Mizuho (MFG - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Mizuho and National Australia Bank Ltd. are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
MFG currently has a forward P/E ratio of 7.38, while NABZY has a forward P/E of 14.08. We also note that MFG has a PEG ratio of 0.77. 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 1.77.
Another notable valuation metric for MFG is its P/B ratio of 0.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NABZY has a P/B of 1.49.
These are just a few of the metrics contributing to MFG's Value grade of B and NABZY's Value grade of D.
Both MFG and NABZY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MFG is the superior value option right now.