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EBKDY vs. HDB: 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 Erste Group Bank AG (EBKDY - Free Report) or HDFC Bank (HDB - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Erste Group Bank AG is sporting a Zacks Rank of #2 (Buy), while HDFC Bank has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that EBKDY likely has seen a stronger improvement to its earnings outlook than HDB has recently. 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.
EBKDY currently has a forward P/E ratio of 5.48, while HDB has a forward P/E of 24.52. We also note that EBKDY has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HDB currently has a PEG ratio of 1.59.
Another notable valuation metric for EBKDY is its P/B ratio of 0.67. 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, HDB has a P/B of 3.51.
These are just a few of the metrics contributing to EBKDY's Value grade of B and HDB's Value grade of F.
EBKDY sticks out from HDB in both our Zacks Rank and Style Scores models, so value investors will likely feel that EBKDY is the better option right now.
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EBKDY vs. HDB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Erste Group Bank AG (EBKDY - Free Report) or HDFC Bank (HDB - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Erste Group Bank AG is sporting a Zacks Rank of #2 (Buy), while HDFC Bank has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that EBKDY likely has seen a stronger improvement to its earnings outlook than HDB has recently. 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.
EBKDY currently has a forward P/E ratio of 5.48, while HDB has a forward P/E of 24.52. We also note that EBKDY has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HDB currently has a PEG ratio of 1.59.
Another notable valuation metric for EBKDY is its P/B ratio of 0.67. 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, HDB has a P/B of 3.51.
These are just a few of the metrics contributing to EBKDY's Value grade of B and HDB's Value grade of F.
EBKDY sticks out from HDB in both our Zacks Rank and Style Scores models, so value investors will likely feel that EBKDY is the better option right now.