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BAP vs. RY: Which Stock Is the Better Value Option?
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Investors with an interest in Banks - Foreign stocks have likely encountered both Credicorp (BAP - Free Report) and Royal Bank (RY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Credicorp has a Zacks Rank of #2 (Buy), while Royal Bank has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BAP likely has seen a stronger improvement to its earnings outlook than RY has recently. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BAP currently has a forward P/E ratio of 9.35, while RY has a forward P/E of 11.43. We also note that BAP has a PEG ratio of 0.58. 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. RY currently has a PEG ratio of 1.74.
Another notable valuation metric for BAP is its P/B ratio of 1.53. 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, RY has a P/B of 1.68.
Based on these metrics and many more, BAP holds a Value grade of B, while RY has a Value grade of D.
BAP sticks out from RY in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAP is the better option right now.
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BAP vs. RY: Which Stock Is the Better Value Option?
Investors with an interest in Banks - Foreign stocks have likely encountered both Credicorp (BAP - Free Report) and Royal Bank (RY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Credicorp has a Zacks Rank of #2 (Buy), while Royal Bank has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that BAP likely has seen a stronger improvement to its earnings outlook than RY has recently. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BAP currently has a forward P/E ratio of 9.35, while RY has a forward P/E of 11.43. We also note that BAP has a PEG ratio of 0.58. 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. RY currently has a PEG ratio of 1.74.
Another notable valuation metric for BAP is its P/B ratio of 1.53. 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, RY has a P/B of 1.68.
Based on these metrics and many more, BAP holds a Value grade of B, while RY has a Value grade of D.
BAP sticks out from RY in both our Zacks Rank and Style Scores models, so value investors will likely feel that BAP is the better option right now.