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BNS vs. SVNLY: Which Stock Should Value Investors Buy Now?
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Investors interested in Banks - Foreign stocks are likely familiar with Bank of Nova Scotia (BNS - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Bank of Nova Scotia and Svenska Handelsbanken Ab Publ are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
BNS currently has a forward P/E ratio of 9.66, while SVNLY has a forward P/E of 9.82. We also note that BNS has a PEG ratio of 1.62. 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 1.68.
Another notable valuation metric for BNS is its P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 1.21.
Based on these metrics and many more, BNS holds a Value grade of B, while SVNLY has a Value grade of F.
Both BNS and SVNLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BNS is the superior value option right now.
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BNS vs. SVNLY: Which Stock Should Value Investors Buy Now?
Investors interested in Banks - Foreign stocks are likely familiar with Bank of Nova Scotia (BNS - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Bank of Nova Scotia and Svenska Handelsbanken Ab Publ are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
BNS currently has a forward P/E ratio of 9.66, while SVNLY has a forward P/E of 9.82. We also note that BNS has a PEG ratio of 1.62. 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 1.68.
Another notable valuation metric for BNS is its P/B ratio of 1.10. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SVNLY has a P/B of 1.21.
Based on these metrics and many more, BNS holds a Value grade of B, while SVNLY has a Value grade of F.
Both BNS and SVNLY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BNS is the superior value option right now.