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NRDBY or BSAC: Which Is the Better Value Stock Right Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Nordea Bank AB (NRDBY - Free Report) and Banco Santander-Chile (BSAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Nordea Bank AB is sporting a Zacks Rank of #1 (Strong Buy), while Banco Santander-Chile has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NRDBY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

NRDBY currently has a forward P/E ratio of 8.18, while BSAC has a forward P/E of 10.30. We also note that NRDBY has a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BSAC currently has a PEG ratio of 2.18.

Another notable valuation metric for NRDBY is its P/B ratio of 1.30. 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, BSAC has a P/B of 1.47.

These metrics, and several others, help NRDBY earn a Value grade of B, while BSAC has been given a Value grade of D.

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


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