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

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Investors interested in Banks - Foreign stocks are likely familiar with 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Societe Generale Group and Erste Group Bank AG are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 8.31, while EBKDY has a forward P/E of 9.22. We also note that SCGLY has a PEG ratio of 0.30. 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 0.77.

Another notable valuation metric for SCGLY is its P/B ratio of 0.51. 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 1.03.

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

Both SCGLY and EBKDY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SCGLY is the superior value option right now.


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Societe Generale Group (SCGLY) - free report >>

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