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KBCSY vs. DBSDY: Which Stock Is the Better Value Option?

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Investors interested in Banks - Foreign stocks are likely familiar with KBC Group SA (KBCSY - Free Report) and DBS Group Holdings Ltd (DBSDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Right now, KBC Group SA is sporting a Zacks Rank of #1 (Strong Buy), while DBS Group Holdings Ltd 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 KBCSY 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.

KBCSY currently has a forward P/E ratio of 7.80, while DBSDY has a forward P/E of 8.45. We also note that KBCSY has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DBSDY currently has a PEG ratio of 1.13.

Another notable valuation metric for KBCSY is its P/B ratio of 1.32. 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, DBSDY has a P/B of 1.45.

These are just a few of the metrics contributing to KBCSY's Value grade of B and DBSDY's Value grade of D.

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


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