We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BBD vs. NU: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Banks - Foreign stocks are likely familiar with Banco Bradesco (BBD - Free Report) and Nu Holdings Ltd. (NU - 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.
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 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.
Right now, Banco Bradesco is sporting a Zacks Rank of #2 (Buy), while Nu Holdings Ltd. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BBD likely has seen a stronger improvement to its earnings outlook than NU has recently. But this is just one factor that value investors are interested in.
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.
BBD currently has a forward P/E ratio of 8.14, while NU has a forward P/E of 17.71. We also note that BBD has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NU currently has a PEG ratio of 0.60.
Another notable valuation metric for BBD is its P/B ratio of 1.35. 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, NU has a P/B of 6.36.
Based on these metrics and many more, BBD holds a Value grade of B, while NU has a Value grade of C.
BBD stands above NU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BBD is the superior value option right now.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
BBD vs. NU: Which Stock Is the Better Value Option?
Investors interested in Banks - Foreign stocks are likely familiar with Banco Bradesco (BBD - Free Report) and Nu Holdings Ltd. (NU - 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.
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 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.
Right now, Banco Bradesco is sporting a Zacks Rank of #2 (Buy), while Nu Holdings Ltd. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BBD likely has seen a stronger improvement to its earnings outlook than NU has recently. But this is just one factor that value investors are interested in.
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.
BBD currently has a forward P/E ratio of 8.14, while NU has a forward P/E of 17.71. We also note that BBD has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NU currently has a PEG ratio of 0.60.
Another notable valuation metric for BBD is its P/B ratio of 1.35. 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, NU has a P/B of 6.36.
Based on these metrics and many more, BBD holds a Value grade of B, while NU has a Value grade of C.
BBD stands above NU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BBD is the superior value option right now.