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HSBC vs. SVNLY: Which Stock Is the Better Value Option?
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Investors interested in Banks - Foreign stocks are likely familiar with HSBC (HSBC - Free Report) and Svenska Handelsbanken Ab Publ (SVNLY - 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 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, both HSBC and Svenska Handelsbanken Ab Publ are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
HSBC currently has a forward P/E ratio of 5.49, while SVNLY has a forward P/E of 6.42. We also note that HSBC has a PEG ratio of 0.25. 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. SVNLY currently has a PEG ratio of 1.43.
Another notable valuation metric for HSBC is its P/B ratio of 0.79. 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, SVNLY has a P/B of 0.87.
Based on these metrics and many more, HSBC holds a Value grade of A, while SVNLY has a Value grade of D.
Both HSBC and SVNLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HSBC is the superior value option right now.
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HSBC vs. SVNLY: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with HSBC (HSBC - Free Report) and Svenska Handelsbanken Ab Publ (SVNLY - 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 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, both HSBC and Svenska Handelsbanken Ab Publ are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
HSBC currently has a forward P/E ratio of 5.49, while SVNLY has a forward P/E of 6.42. We also note that HSBC has a PEG ratio of 0.25. 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. SVNLY currently has a PEG ratio of 1.43.
Another notable valuation metric for HSBC is its P/B ratio of 0.79. 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, SVNLY has a P/B of 0.87.
Based on these metrics and many more, HSBC holds a Value grade of A, while SVNLY has a Value grade of D.
Both HSBC and SVNLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HSBC is the superior value option right now.