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SVNLY vs. BCH: Which Stock Is the Better Value Option?

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Investors with an interest in Banks - Foreign stocks have likely encountered both Svenska Handelsbanken Ab Publ (SVNLY - Free Report) and Banco De Chile (BCH - 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.

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, Svenska Handelsbanken Ab Publ is sporting a Zacks Rank of #2 (Buy), while Banco De Chile has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SVNLY has an improving earnings outlook. 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.

SVNLY currently has a forward P/E ratio of 9.38, while BCH has a forward P/E of 9.72. We also note that SVNLY has a PEG ratio of 1.44. 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. BCH currently has a PEG ratio of 1.46.

Another notable valuation metric for SVNLY is its P/B ratio of 1.14. 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, BCH has a P/B of 2.08.

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

SVNLY sticks out from BCH in both our Zacks Rank and Style Scores models, so value investors will likely feel that SVNLY is the better option right now.


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Banco De Chile (BCH) - free report >>

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