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BDORY or SVNLY: Which Is the Better Value Stock Right Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Banco Do Brasil SA (BDORY - Free Report) and Svenska Handelsbanken Ab Publ (SVNLY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Banco Do Brasil SA and Svenska Handelsbanken Ab Publ are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BDORY currently has a forward P/E ratio of 4.37, while SVNLY has a forward P/E of 8.84. We also note that BDORY has a PEG ratio of 1.34. 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 1.51.

Another notable valuation metric for BDORY is its P/B ratio of 0.98. 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, SVNLY has a P/B of 1.06.

These metrics, and several others, help BDORY earn a Value grade of A, while SVNLY has been given a Value grade of F.

BDORY stands above SVNLY 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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