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BNPQY vs. NABZY: Which Stock Is the Better Value Option?

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Investors interested in Banks - Foreign stocks are likely familiar with BNP Paribas SA (BNPQY - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, BNP Paribas SA has a Zacks Rank of #1 (Strong Buy), while National Australia Bank Ltd. has a Zacks Rank of #5 (Strong Sell). This means that BNPQY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

BNPQY currently has a forward P/E ratio of 5.62, while NABZY has a forward P/E of 10.18. We also note that BNPQY has a PEG ratio of 0.32. 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. NABZY currently has a PEG ratio of 1.69.

Another notable valuation metric for BNPQY is its P/B ratio of 0.58. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NABZY has a P/B of 1.24.

These metrics, and several others, help BNPQY earn a Value grade of B, while NABZY has been given a Value grade of F.

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


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BNP Paribas SA (BNPQY) - free report >>

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