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BSBR or BNS: Which Is the Better Value Stock Right Now?
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Investors interested in Banks - Foreign stocks are likely familiar with Banco Santander-Brazil (BSBR - Free Report) and Bank of Nova Scotia (BNS - 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.
Banco Santander-Brazil has a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BSBR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
BSBR currently has a forward P/E ratio of 7.83, while BNS has a forward P/E of 9.36. We also note that BSBR has a PEG ratio of 1.10. 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. BNS currently has a PEG ratio of 1.57.
Another notable valuation metric for BSBR is its P/B ratio of 0.95. 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, BNS has a P/B of 1.07.
These metrics, and several others, help BSBR earn a Value grade of B, while BNS has been given a Value grade of D.
BSBR 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 BSBR is likely the superior value option right now.
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BSBR or BNS: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with Banco Santander-Brazil (BSBR - Free Report) and Bank of Nova Scotia (BNS - 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.
Banco Santander-Brazil has a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BSBR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
BSBR currently has a forward P/E ratio of 7.83, while BNS has a forward P/E of 9.36. We also note that BSBR has a PEG ratio of 1.10. 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. BNS currently has a PEG ratio of 1.57.
Another notable valuation metric for BSBR is its P/B ratio of 0.95. 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, BNS has a P/B of 1.07.
These metrics, and several others, help BSBR earn a Value grade of B, while BNS has been given a Value grade of D.
BSBR 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 BSBR is likely the superior value option right now.