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Banco Bilbao Viscaya Argentaria S.A. (BBVA) - free report >>
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Banco Bilbao Viscaya Argentaria S.A. (BBVA) - free report >>
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BBVA or NRDBY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Bilbao (BBVA - Free Report) or Nordea Bank AB (NRDBY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Banco Bilbao and Nordea Bank AB have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
BBVA currently has a forward P/E ratio of 6.84, while NRDBY has a forward P/E of 7.60. We also note that BBVA has a PEG ratio of 0.58. 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. NRDBY currently has a PEG ratio of 0.73.
Another notable valuation metric for BBVA is its P/B ratio of 1.05. 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, NRDBY has a P/B of 1.19.
These metrics, and several others, help BBVA earn a Value grade of B, while NRDBY has been given a Value grade of D.
Both BBVA and NRDBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BBVA is the superior value option right now.