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BBVA vs. NABZY: Which Stock Is the Better Value Option?

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Investors interested in Banks - Foreign stocks are likely familiar with Banco Bilbao (BBVA - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Banco Bilbao and National Australia Bank Ltd. are both sporting a Zacks Rank of #1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.

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.

BBVA currently has a forward P/E ratio of 10.45, while NABZY has a forward P/E of 17.38. We also note that BBVA has a PEG ratio of 0.87. 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. NABZY currently has a PEG ratio of 4.99.

Another notable valuation metric for BBVA is its P/B ratio of 1.99. 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, NABZY has a P/B of 2.18.

Based on these metrics and many more, BBVA holds a Value grade of B, while NABZY has a Value grade of C.

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


See More Zacks Research for These Tickers


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Banco Bilbao Viscaya Argentaria S.A. (BBVA) - free report >>

National Australia Bank Ltd. (NABZY) - free report >>

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