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DB or TD: Which Is the Better Value Stock Right Now?
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Investors interested in Banks - Foreign stocks are likely familiar with Deutsche Bank (DB - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Deutsche Bank has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DB likely has seen a stronger improvement to its earnings outlook than TD has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
DB currently has a forward P/E ratio of 6.02, while TD has a forward P/E of 9.97. We also note that DB has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TD currently has a PEG ratio of 1.27.
Another notable valuation metric for DB is its P/B ratio of 0.31. 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, TD has a P/B of 1.55.
Based on these metrics and many more, DB holds a Value grade of A, while TD has a Value grade of C.
DB stands above TD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DB is the superior value option right now.
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DB or TD: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with Deutsche Bank (DB - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Deutsche Bank has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DB likely has seen a stronger improvement to its earnings outlook than TD has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
DB currently has a forward P/E ratio of 6.02, while TD has a forward P/E of 9.97. We also note that DB has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TD currently has a PEG ratio of 1.27.
Another notable valuation metric for DB is its P/B ratio of 0.31. 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, TD has a P/B of 1.55.
Based on these metrics and many more, DB holds a Value grade of A, while TD has a Value grade of C.
DB stands above TD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DB is the superior value option right now.