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DNBBY or CMWAY: Which Is the Better Value Stock Right Now?
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Investors with an interest in Banks - Foreign stocks have likely encountered both DNB Bank ASA (DNBBY - Free Report) and Commonwealth Bank of Australia Sponsored ADR (CMWAY - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
DNB Bank ASA and Commonwealth Bank of Australia Sponsored ADR are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DNBBY has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
DNBBY currently has a forward P/E ratio of 9.53, while CMWAY has a forward P/E of 28.76. We also note that DNBBY has a PEG ratio of 7.45. 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. CMWAY currently has a PEG ratio of 9.34.
Another notable valuation metric for DNBBY is its P/B ratio of 1.59. 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, CMWAY has a P/B of 3.98.
These metrics, and several others, help DNBBY earn a Value grade of B, while CMWAY has been given a Value grade of F.
DNBBY has seen stronger estimate revision activity and sports more attractive valuation metrics than CMWAY, so it seems like value investors will conclude that DNBBY is the superior option right now.
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DNBBY or CMWAY: Which Is the Better Value Stock Right Now?
Investors with an interest in Banks - Foreign stocks have likely encountered both DNB Bank ASA (DNBBY - Free Report) and Commonwealth Bank of Australia Sponsored ADR (CMWAY - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
DNB Bank ASA and Commonwealth Bank of Australia Sponsored ADR are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DNBBY has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
DNBBY currently has a forward P/E ratio of 9.53, while CMWAY has a forward P/E of 28.76. We also note that DNBBY has a PEG ratio of 7.45. 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. CMWAY currently has a PEG ratio of 9.34.
Another notable valuation metric for DNBBY is its P/B ratio of 1.59. 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, CMWAY has a P/B of 3.98.
These metrics, and several others, help DNBBY earn a Value grade of B, while CMWAY has been given a Value grade of F.
DNBBY has seen stronger estimate revision activity and sports more attractive valuation metrics than CMWAY, so it seems like value investors will conclude that DNBBY is the superior option right now.