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DB or CM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Banks - Foreign sector might want to consider either Deutsche Bank (DB - Free Report) or Canadian Imperial Bank (CM - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Deutsche Bank is sporting a Zacks Rank of #1 (Strong Buy), while Canadian Imperial Bank has a Zacks Rank of #3 (Hold). This means that DB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DB currently has a forward P/E ratio of 6.03, while CM has a forward P/E of 9.49. We also note that DB has a PEG ratio of 0.75. 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. CM currently has a PEG ratio of 2.17.
Another notable valuation metric for DB is its P/B ratio of 0.35. 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, CM has a P/B of 1.15.
Based on these metrics and many more, DB holds a Value grade of B, while CM has a Value grade of C.
DB stands above CM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DB is the superior value option right now.
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DB or CM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Deutsche Bank (DB - Free Report) or Canadian Imperial Bank (CM - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Deutsche Bank is sporting a Zacks Rank of #1 (Strong Buy), while Canadian Imperial Bank has a Zacks Rank of #3 (Hold). This means that DB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DB currently has a forward P/E ratio of 6.03, while CM has a forward P/E of 9.49. We also note that DB has a PEG ratio of 0.75. 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. CM currently has a PEG ratio of 2.17.
Another notable valuation metric for DB is its P/B ratio of 0.35. 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, CM has a P/B of 1.15.
Based on these metrics and many more, DB holds a Value grade of B, while CM has a Value grade of C.
DB stands above CM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DB is the superior value option right now.