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KEY vs. NTRS: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Banks - Major Regional stocks have likely encountered both KeyCorp (KEY - Free Report) and Northern Trust Corporation (NTRS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Currently, KeyCorp has a Zacks Rank of #2 (Buy), while Northern Trust Corporation has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KEY has an improving earnings outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KEY currently has a forward P/E ratio of 11.41, while NTRS has a forward P/E of 14.15. We also note that KEY has a PEG ratio of 0.76. 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. NTRS currently has a PEG ratio of 0.94.
Another notable valuation metric for KEY is its P/B ratio of 1.43. 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, NTRS has a P/B of 2.43.
These metrics, and several others, help KEY earn a Value grade of B, while NTRS has been given a Value grade of F.
KEY stands above NTRS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KEY is the superior value option right now.
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KEY vs. NTRS: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Major Regional stocks have likely encountered both KeyCorp (KEY - Free Report) and Northern Trust Corporation (NTRS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
Currently, KeyCorp has a Zacks Rank of #2 (Buy), while Northern Trust Corporation has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KEY has an improving earnings outlook. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
KEY currently has a forward P/E ratio of 11.41, while NTRS has a forward P/E of 14.15. We also note that KEY has a PEG ratio of 0.76. 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. NTRS currently has a PEG ratio of 0.94.
Another notable valuation metric for KEY is its P/B ratio of 1.43. 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, NTRS has a P/B of 2.43.
These metrics, and several others, help KEY earn a Value grade of B, while NTRS has been given a Value grade of F.
KEY stands above NTRS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KEY is the superior value option right now.