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ISNPY vs. TD: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Intesa Sanpaolo SpA (ISNPY - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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, Intesa Sanpaolo SpA is sporting a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank 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 ISNPY has an improving earnings outlook. 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 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.

ISNPY currently has a forward P/E ratio of 7.53, while TD has a forward P/E of 9.44. We also note that ISNPY has a PEG ratio of 0.58. 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. TD currently has a PEG ratio of 1.20.

Another notable valuation metric for ISNPY is its P/B ratio of 0.40. 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, TD has a P/B of 1.49.

Based on these metrics and many more, ISNPY holds a Value grade of B, while TD has a Value grade of C.

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


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Toronto Dominion Bank (The) (TD) - free report >>

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