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KB vs. NU: Which Stock Is the Better Value Option?
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Investors interested in Banks - Foreign stocks are likely familiar with KB Financial (KB - Free Report) and Nu Holdings Ltd. (NU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
KB Financial has a Zacks Rank of #2 (Buy), while Nu Holdings Ltd. has a Zacks Rank of #4 (Sell) right now. This means that KB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
KB currently has a forward P/E ratio of 6.73, while NU has a forward P/E of 22.20. We also note that KB has a PEG ratio of 0.55. 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. NU currently has a PEG ratio of 0.66.
Another notable valuation metric for KB is its P/B ratio of 0.67. 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, NU has a P/B of 6.71.
Based on these metrics and many more, KB holds a Value grade of A, while NU has a Value grade of D.
KB sticks out from NU in both our Zacks Rank and Style Scores models, so value investors will likely feel that KB is the better option right now.
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KB vs. NU: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with KB Financial (KB - Free Report) and Nu Holdings Ltd. (NU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
KB Financial has a Zacks Rank of #2 (Buy), while Nu Holdings Ltd. has a Zacks Rank of #4 (Sell) right now. This means that KB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
KB currently has a forward P/E ratio of 6.73, while NU has a forward P/E of 22.20. We also note that KB has a PEG ratio of 0.55. 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. NU currently has a PEG ratio of 0.66.
Another notable valuation metric for KB is its P/B ratio of 0.67. 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, NU has a P/B of 6.71.
Based on these metrics and many more, KB holds a Value grade of A, while NU has a Value grade of D.
KB sticks out from NU in both our Zacks Rank and Style Scores models, so value investors will likely feel that KB is the better option right now.