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BDORY vs. SVNLY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Banco Do Brasil SA (BDORY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Banco Do Brasil SA is sporting a Zacks Rank of #2 (Buy), while Svenska Handelsbanken Ab Publ has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BDORY has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BDORY currently has a forward P/E ratio of 3.56, while SVNLY has a forward P/E of 6.59. We also note that BDORY has a PEG ratio of 0.44. 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. SVNLY currently has a PEG ratio of 1.47.
Another notable valuation metric for BDORY is its P/B ratio of 0.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 0.90.
These are just a few of the metrics contributing to BDORY's Value grade of A and SVNLY's Value grade of D.
BDORY stands above SVNLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BDORY is the superior value option right now.
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BDORY vs. SVNLY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of Banco Do Brasil SA (BDORY - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Banco Do Brasil SA is sporting a Zacks Rank of #2 (Buy), while Svenska Handelsbanken Ab Publ has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BDORY has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BDORY currently has a forward P/E ratio of 3.56, while SVNLY has a forward P/E of 6.59. We also note that BDORY has a PEG ratio of 0.44. 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. SVNLY currently has a PEG ratio of 1.47.
Another notable valuation metric for BDORY is its P/B ratio of 0.76. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 0.90.
These are just a few of the metrics contributing to BDORY's Value grade of A and SVNLY's Value grade of D.
BDORY stands above SVNLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BDORY is the superior value option right now.