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NRDBY vs. HDB: Which Stock Is the Better Value Option?
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Investors interested in Banks - Foreign stocks are likely familiar with Nordea Bank AB (NRDBY - Free Report) and HDFC Bank (HDB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Nordea Bank AB and HDFC Bank are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
NRDBY currently has a forward P/E ratio of 8.01, while HDB has a forward P/E of 19.72. We also note that NRDBY has a PEG ratio of 0.77. 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. HDB currently has a PEG ratio of 0.94.
Another notable valuation metric for NRDBY is its P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HDB has a P/B of 3.88.
These are just a few of the metrics contributing to NRDBY's Value grade of A and HDB's Value grade of D.
Both NRDBY and HDB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NRDBY is the superior value option right now.
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NRDBY vs. HDB: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with Nordea Bank AB (NRDBY - Free Report) and HDFC Bank (HDB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Nordea Bank AB and HDFC Bank are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
NRDBY currently has a forward P/E ratio of 8.01, while HDB has a forward P/E of 19.72. We also note that NRDBY has a PEG ratio of 0.77. 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. HDB currently has a PEG ratio of 0.94.
Another notable valuation metric for NRDBY is its P/B ratio of 1.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HDB has a P/B of 3.88.
These are just a few of the metrics contributing to NRDBY's Value grade of A and HDB's Value grade of D.
Both NRDBY and HDB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NRDBY is the superior value option right now.