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

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Investors with an interest in Banks - Foreign stocks have likely encountered both BNP Paribas SA (BNPQY - Free Report) and Nordea Bank AB (NRDBY - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both BNP Paribas SA and Nordea Bank AB are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BNPQY currently has a forward P/E ratio of 6.87, while NRDBY has a forward P/E of 8.32. We also note that BNPQY has a PEG ratio of 0.35. 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. NRDBY currently has a PEG ratio of 0.77.

Another notable valuation metric for BNPQY is its P/B ratio of 0.62. 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, NRDBY has a P/B of 1.25.

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

Both BNPQY and NRDBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BNPQY is the superior value option right now.


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