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BBVA vs. SVNLY: Which Stock Is the Better Value Option?
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Investors interested in Banks - Foreign stocks are likely familiar with Banco Bilbao (BBVA - Free Report) and Svenska Handelsbanken Ab Publ (SVNLY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Banco Bilbao has a Zacks Rank of #1 (Strong Buy), while Svenska Handelsbanken Ab Publ has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BBVA is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.
BBVA currently has a forward P/E ratio of 6.82, while SVNLY has a forward P/E of 7.81. We also note that BBVA has a PEG ratio of 0.47. 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 1.34.
Another notable valuation metric for BBVA is its P/B ratio of 0.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 1.06.
These metrics, and several others, help BBVA earn a Value grade of B, while SVNLY has been given a Value grade of D.
BBVA stands above SVNLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BBVA is the superior value option right now.
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BBVA vs. SVNLY: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with Banco Bilbao (BBVA - Free Report) and Svenska Handelsbanken Ab Publ (SVNLY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Banco Bilbao has a Zacks Rank of #1 (Strong Buy), while Svenska Handelsbanken Ab Publ has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BBVA is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.
BBVA currently has a forward P/E ratio of 6.82, while SVNLY has a forward P/E of 7.81. We also note that BBVA has a PEG ratio of 0.47. 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 1.34.
Another notable valuation metric for BBVA is its P/B ratio of 0.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 1.06.
These metrics, and several others, help BBVA earn a Value grade of B, while SVNLY has been given a Value grade of D.
BBVA stands above SVNLY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BBVA is the superior value option right now.