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BAP vs. NRDBY: 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 Credicorp (BAP - Free Report) or 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Credicorp and Nordea Bank AB are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

BAP currently has a forward P/E ratio of 7.10, while NRDBY has a forward P/E of 7.84. We also note that BAP has a PEG ratio of 0.53. 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. NRDBY currently has a PEG ratio of 0.78.

Another notable valuation metric for BAP is its P/B ratio of 1.22. 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, NRDBY has a P/B of 1.27.

Based on these metrics and many more, BAP holds a Value grade of A, while NRDBY has a Value grade of D.

Both BAP and NRDBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BAP is the superior value option right now.


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Credicorp Ltd. (BAP) - free report >>

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