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

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Investors with an interest in Banks - Foreign stocks have likely encountered both UniCredit S.p.A. Unsponsored ADR (UNCRY - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

UniCredit S.p.A. Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while National Australia Bank Ltd. has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that UNCRY likely has seen a stronger improvement to its earnings outlook than NABZY has recently. 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.

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.

UNCRY currently has a forward P/E ratio of 6.75, while NABZY has a forward P/E of 13.02. We also note that UNCRY has a PEG ratio of 0.38. 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 1.11.

Another notable valuation metric for UNCRY is its P/B ratio of 0.41. 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 1.54.

These are just a few of the metrics contributing to UNCRY's Value grade of B and NABZY's Value grade of C.

UNCRY stands above NABZY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UNCRY is the superior value option right now.


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

UniCredit S.p.A. Unsponsored ADR (UNCRY) - free report >>

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