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SCGLY vs. EBKDY: Which Stock Is the Better Value Option?

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Investors with an interest in Banks - Foreign stocks have likely encountered both Societe Generale Group (SCGLY - Free Report) and Erste Group Bank AG (EBKDY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Societe Generale Group has a Zacks Rank of #1 (Strong Buy), while Erste Group Bank AG has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SCGLY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

SCGLY currently has a forward P/E ratio of 7.87, while EBKDY has a forward P/E of 8.95. We also note that SCGLY has a PEG ratio of 0.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EBKDY currently has a PEG ratio of 1.13.

Another notable valuation metric for SCGLY is its P/B ratio of 0.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EBKDY has a P/B of 0.92.

Based on these metrics and many more, SCGLY holds a Value grade of A, while EBKDY has a Value grade of D.

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


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Societe Generale Group (SCGLY) - free report >>

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