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KBCSY vs. NRDBY: Which Stock Should Value Investors Buy Now?

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Investors interested in Banks - Foreign stocks are likely familiar with KBC Group SA (KBCSY - Free Report) and Nordea Bank AB (NRDBY - 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 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.

Right now, KBC Group SA is sporting a Zacks Rank of #2 (Buy), while Nordea Bank AB has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KBCSY has an improving earnings outlook. But this is just one piece of the puzzle 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.

KBCSY currently has a forward P/E ratio of 8.76, while NRDBY has a forward P/E of 11.20. We also note that KBCSY has a PEG ratio of 1.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NRDBY currently has a PEG ratio of 5.16.

Another notable valuation metric for KBCSY is its P/B ratio of 0.98. 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, NRDBY has a P/B of 1.16.

These are just a few of the metrics contributing to KBCSY's Value grade of B and NRDBY's Value grade of F.

KBCSY has seen stronger estimate revision activity and sports more attractive valuation metrics than NRDBY, so it seems like value investors will conclude that KBCSY is the superior option right now.


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