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SUPV or ING: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Banks - Foreign sector might want to consider either Grupo Supervielle (SUPV - Free Report) or ING Groep (ING - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Grupo Supervielle has a Zacks Rank of #2 (Buy), while ING Groep has a Zacks Rank of #3 (Hold) right now. This means that SUPV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SUPV currently has a forward P/E ratio of 4.06, while ING has a forward P/E of 10.59. We also note that SUPV has a PEG ratio of 2.14. 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. ING currently has a PEG ratio of 2.26.

Another notable valuation metric for SUPV is its P/B ratio of 0.49. 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, ING has a P/B of 0.51.

These are just a few of the metrics contributing to SUPV's Value grade of A and ING's Value grade of F.

SUPV has seen stronger estimate revision activity and sports more attractive valuation metrics than ING, so it seems like value investors will conclude that SUPV is the superior option right now.


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