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MFG or BNS: Which Is the Better Value Stock Right Now?
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Investors interested in Banks - Foreign stocks are likely familiar with Mizuho (MFG - Free Report) and Bank of Nova Scotia (BNS - 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 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, Mizuho is sporting a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MFG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 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.
MFG currently has a forward P/E ratio of 8.09, while BNS has a forward P/E of 8.53. We also note that MFG has a PEG ratio of 1.22. 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. BNS currently has a PEG ratio of 1.96.
Another notable valuation metric for MFG is its P/B ratio of 0.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BNS has a P/B of 1.14.
These metrics, and several others, help MFG earn a Value grade of B, while BNS has been given a Value grade of D.
MFG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MFG is likely the superior value option right now.
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MFG or BNS: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with Mizuho (MFG - Free Report) and Bank of Nova Scotia (BNS - 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 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, Mizuho is sporting a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MFG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 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.
MFG currently has a forward P/E ratio of 8.09, while BNS has a forward P/E of 8.53. We also note that MFG has a PEG ratio of 1.22. 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. BNS currently has a PEG ratio of 1.96.
Another notable valuation metric for MFG is its P/B ratio of 0.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BNS has a P/B of 1.14.
These metrics, and several others, help MFG earn a Value grade of B, while BNS has been given a Value grade of D.
MFG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MFG is likely the superior value option right now.