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CIB vs. NRDBY: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Banks - Foreign sector might want to consider either Bancolombia (CIB - Free Report) or Nordea Bank AB (NRDBY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Bancolombia and Nordea Bank AB have a Zacks Rank of #1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.

CIB currently has a forward P/E ratio of 6.98, while NRDBY has a forward P/E of 9.27. We also note that CIB has a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NRDBY currently has a PEG ratio of 5.65.

Another notable valuation metric for CIB is its P/B ratio of 1.29. 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, NRDBY has a P/B of 1.64.

These are just a few of the metrics contributing to CIB's Value grade of B and NRDBY's Value grade of D.

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


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BanColombia S.A. (CIB) - free report >>

Nordea Bank AB (NRDBY) - free report >>

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