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ING or NRDBY: Which Is the Better Value Stock Right Now?
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Investors interested in Banks - Foreign stocks are likely familiar with ING Groep (ING - Free Report) and Nordea Bank AB (NRDBY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
ING Groep has a Zacks Rank of #2 (Buy), while Nordea Bank AB has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ING is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ING currently has a forward P/E ratio of 6.15, while NRDBY has a forward P/E of 7.71. We also note that ING has a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NRDBY currently has a PEG ratio of 0.78.
Another notable valuation metric for ING is its P/B ratio of 0.83. 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, NRDBY has a P/B of 1.25.
These are just a few of the metrics contributing to ING's Value grade of A and NRDBY's Value grade of D.
ING is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ING is likely the superior value option right now.
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ING or NRDBY: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with ING Groep (ING - Free Report) and Nordea Bank AB (NRDBY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
ING Groep has a Zacks Rank of #2 (Buy), while Nordea Bank AB has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ING is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ING currently has a forward P/E ratio of 6.15, while NRDBY has a forward P/E of 7.71. We also note that ING has a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NRDBY currently has a PEG ratio of 0.78.
Another notable valuation metric for ING is its P/B ratio of 0.83. 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, NRDBY has a P/B of 1.25.
These are just a few of the metrics contributing to ING's Value grade of A and NRDBY's Value grade of D.
ING is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ING is likely the superior value option right now.