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DNBBY vs. CMWAY: Which Stock Is the Better Value Option?
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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 presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, DNB Bank ASA has a Zacks Rank of #1 (Strong Buy), while Commonwealth Bank of Australia Sponsored ADR has a Zacks Rank of #2 (Buy). 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 piece of the puzzle for value investors.
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.
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.
DNBBY currently has a forward P/E ratio of 9.75, while CMWAY has a forward P/E of 29.02. We also note that DNBBY has a PEG ratio of 7.62. 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. CMWAY currently has a PEG ratio of 8.31.
Another notable valuation metric for DNBBY is its P/B ratio of 1.62. 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 4.06.
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 vs. CMWAY: Which Stock Is the Better Value Option?
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 presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, DNB Bank ASA has a Zacks Rank of #1 (Strong Buy), while Commonwealth Bank of Australia Sponsored ADR has a Zacks Rank of #2 (Buy). 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 piece of the puzzle for value investors.
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.
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.
DNBBY currently has a forward P/E ratio of 9.75, while CMWAY has a forward P/E of 29.02. We also note that DNBBY has a PEG ratio of 7.62. 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. CMWAY currently has a PEG ratio of 8.31.
Another notable valuation metric for DNBBY is its P/B ratio of 1.62. 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 4.06.
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.