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MFG or DBSDY: Which Is the Better Value Stock Right Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Mizuho (MFG - Free Report) and DBS Group Holdings Ltd (DBSDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Mizuho is sporting a Zacks Rank of #2 (Buy), while DBS Group Holdings Ltd has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MFG likely has seen a stronger improvement to its earnings outlook than DBSDY has recently. 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 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.

MFG currently has a forward P/E ratio of 11.10, while DBSDY has a forward P/E of 11.65. We also note that MFG has a PEG ratio of 0.61. 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. DBSDY currently has a PEG ratio of 3.50.

Another notable valuation metric for MFG is its P/B ratio of 0.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DBSDY has a P/B of 1.90.

Based on these metrics and many more, MFG holds a Value grade of B, while DBSDY has a Value grade of D.

MFG sticks out from DBSDY in both our Zacks Rank and Style Scores models, so value investors will likely feel that MFG is the better option right now.


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Mizuho Financial Group, Inc. (MFG) - free report >>

DBS Group Holdings Ltd (DBSDY) - free report >>

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