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UNCRY or SVNLY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Banks - Foreign stocks have likely encountered both UniCredit S.p.A. Unsponsored ADR (UNCRY - 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 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.

UniCredit S.p.A. Unsponsored ADR and Svenska Handelsbanken Ab Publ are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that UNCRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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.

UNCRY currently has a forward P/E ratio of 5.39, while SVNLY has a forward P/E of 9.48. We also note that UNCRY has a PEG ratio of 0.17. 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 1.62.

Another notable valuation metric for UNCRY is its P/B ratio of 0.74. 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, SVNLY has a P/B of 1.12.

Based on these metrics and many more, UNCRY holds a Value grade of B, while SVNLY has a Value grade of D.

UNCRY 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 UNCRY is likely the superior value option right now.


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Svenska Handelsbanken Ab Publ (SVNLY) - free report >>

UniCredit S.p.A. Unsponsored ADR (UNCRY) - free report >>

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