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SCGLY or EBKDY: Which Is the Better Value Stock Right Now?

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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 is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Societe Generale Group has a Zacks Rank of #1 (Strong Buy), while Erste Group Bank AG has a Zacks Rank of #3 (Hold) right now. This means that SCGLY'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 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.

SCGLY currently has a forward P/E ratio of 8.03, while EBKDY has a forward P/E of 9.79. We also note that SCGLY has a PEG ratio of 0.29. 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. EBKDY currently has a PEG ratio of 1.24.

Another notable valuation metric for SCGLY is its P/B ratio of 0.49. 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, EBKDY has a P/B of 1.01.

These are just a few of the metrics contributing to SCGLY's Value grade of A and EBKDY's Value grade of D.

SCGLY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SCGLY is likely the superior value option right now.


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