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

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Investors looking for stocks in the Banks - Foreign sector might want to consider either Svenska Handelsbanken Ab Publ (SVNLY - Free Report) or DNB Bank ASA (DNBBY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Svenska Handelsbanken Ab Publ has a Zacks Rank of #2 (Buy), while DNB Bank ASA has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SVNLY likely has seen a stronger improvement to its earnings outlook than DNBBY has recently. However, value investors will care about much more than just this.

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.

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.

SVNLY currently has a forward P/E ratio of 7.24, while DNBBY has a forward P/E of 8.13. We also note that SVNLY has a PEG ratio of 1.89. 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. DNBBY currently has a PEG ratio of 2.14.

Another notable valuation metric for SVNLY is its P/B ratio of 0.91. 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, DNBBY has a P/B of 1.07.

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

SVNLY sticks out from DNBBY 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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DNB Bank ASA (DNBBY) - free report >>

Svenska Handelsbanken Ab Publ (SVNLY) - free report >>

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