Back to top

Image: Bigstock

KBCSY or DBSDY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Banks - Foreign stocks have likely encountered both KBC Group SA (KBCSY - Free Report) and DBS Group Holdings Ltd (DBSDY - 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.

KBC Group SA and DBS Group Holdings Ltd are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This means that KBCSY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

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 7.46, while DBSDY has a forward P/E of 8.26. We also note that KBCSY has a PEG ratio of 0.64. 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. DBSDY currently has a PEG ratio of 1.26.

Another notable valuation metric for KBCSY is its P/B ratio of 1.27. 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, DBSDY has a P/B of 1.39.

Based on these metrics and many more, KBCSY holds a Value grade of B, while DBSDY has a Value grade of D.

KBCSY sticks out from DBSDY in both our Zacks Rank and Style Scores models, so value investors will likely feel that KBCSY is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DBS Group Holdings Ltd (DBSDY) - free report >>

KBC Group SA (KBCSY) - free report >>

Published in