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ISNPY vs. NRDBY: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Banks - Foreign sector might want to consider either Intesa Sanpaolo SpA (ISNPY - Free Report) or Nordea Bank AB (NRDBY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Intesa Sanpaolo SpA has a Zacks Rank of #2 (Buy), while Nordea Bank AB has a Zacks Rank of #3 (Hold) right now. This means that ISNPY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

ISNPY currently has a forward P/E ratio of 6.33, while NRDBY has a forward P/E of 8.54. We also note that ISNPY has a PEG ratio of 0.20. 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. NRDBY currently has a PEG ratio of 0.82.

Another notable valuation metric for ISNPY is its P/B ratio of 0.75. 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 1.36.

Based on these metrics and many more, ISNPY holds a Value grade of B, while NRDBY has a Value grade of C.

ISNPY 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 ISNPY is likely the superior value option right now.


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Intesa Sanpaolo SpA (ISNPY) - free report >>

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