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BDORY vs. NRDBY: Which Stock Is the Better Value Option?

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Investors with an interest in Banks - Foreign stocks have likely encountered both Banco Do Brasil SA (BDORY - Free Report) and Nordea Bank AB (NRDBY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Banco Do Brasil SA has a Zacks Rank of #2 (Buy), while Nordea Bank AB has a Zacks Rank of #3 (Hold) right now. This means that BDORY'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 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.

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.

BDORY currently has a forward P/E ratio of 4.21, while NRDBY has a forward P/E of 8.12. We also note that BDORY has a PEG ratio of 0.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NRDBY currently has a PEG ratio of 0.78.

Another notable valuation metric for BDORY is its P/B ratio of 0.94. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NRDBY has a P/B of 1.30.

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

BDORY stands above NRDBY 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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