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SUPV vs. DBSDY: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Banks - Foreign stocks have likely encountered both Grupo Supervielle (SUPV - Free Report) and DBS Group Holdings Ltd (DBSDY - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Grupo Supervielle has a Zacks Rank of #2 (Buy), while DBS Group Holdings Ltd has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SUPV likely has seen a stronger improvement to its earnings outlook than DBSDY has recently. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SUPV currently has a forward P/E ratio of 9.24, while DBSDY has a forward P/E of 11.69. We also note that SUPV has a PEG ratio of 2.76. 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. DBSDY currently has a PEG ratio of 7.45.

Another notable valuation metric for SUPV is its P/B ratio of 1.24. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DBSDY has a P/B of 1.92.

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

SUPV has seen stronger estimate revision activity and sports more attractive valuation metrics than DBSDY, so it seems like value investors will conclude that SUPV is the superior option right now.


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