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SHG vs. EBKDY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Shinhan Financial (SHG - Free Report) and Erste Group Bank AG (EBKDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Shinhan Financial is sporting a Zacks Rank of #1 (Strong Buy), while Erste Group Bank AG has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SHG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
SHG currently has a forward P/E ratio of 6.50, while EBKDY has a forward P/E of 11.02. We also note that SHG has a PEG ratio of 0.53. 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. EBKDY currently has a PEG ratio of 0.86.
Another notable valuation metric for SHG is its P/B ratio of 0.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EBKDY has a P/B of 1.08.
These are just a few of the metrics contributing to SHG's Value grade of B and EBKDY's Value grade of C.
SHG stands above EBKDY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SHG is the superior value option right now.
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SHG vs. EBKDY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of Shinhan Financial (SHG - Free Report) and Erste Group Bank AG (EBKDY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Shinhan Financial is sporting a Zacks Rank of #1 (Strong Buy), while Erste Group Bank AG has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SHG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
SHG currently has a forward P/E ratio of 6.50, while EBKDY has a forward P/E of 11.02. We also note that SHG has a PEG ratio of 0.53. 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. EBKDY currently has a PEG ratio of 0.86.
Another notable valuation metric for SHG is its P/B ratio of 0.56. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EBKDY has a P/B of 1.08.
These are just a few of the metrics contributing to SHG's Value grade of B and EBKDY's Value grade of C.
SHG stands above EBKDY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SHG is the superior value option right now.