Back to top

Image: Bigstock

ISNPY or SVNLY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Banks - Foreign stocks are likely familiar with Intesa Sanpaolo SpA (ISNPY - Free Report) and Svenska Handelsbanken Ab Publ (SVNLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Intesa Sanpaolo SpA and Svenska Handelsbanken Ab Publ are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 9.02, while SVNLY has a forward P/E of 10.02. We also note that ISNPY has a PEG ratio of 0.69. 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. SVNLY currently has a PEG ratio of 1.69.

Another notable valuation metric for ISNPY is its P/B ratio of 0.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 0.99.

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

Both ISNPY and SVNLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ISNPY is the superior value option right now.


See More Zacks Research for These Tickers


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


Intesa Sanpaolo SpA (ISNPY) - free report >>

Svenska Handelsbanken Ab Publ (SVNLY) - free report >>

Published in