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SUPV vs. BSBR: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Grupo Supervielle (SUPV - Free Report) and Banco Santander-Brazil (BSBR - 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.

Grupo Supervielle and Banco Santander-Brazil are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SUPV likely has seen a stronger improvement to its earnings outlook than BSBR has recently. But this is just one factor that value investors are interested in.

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 3.40, while BSBR has a forward P/E of 8.79. We also note that SUPV has a PEG ratio of 1.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BSBR currently has a PEG ratio of 4.01.

Another notable valuation metric for SUPV is its P/B ratio of 0.46. 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, BSBR has a P/B of 0.90.

Based on these metrics and many more, SUPV holds a Value grade of A, while BSBR has a Value grade of C.

SUPV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SUPV is likely the superior value option right now.


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Banco Santander Brasil SA (BSBR) - free report >>

Grupo Supervielle S.A. (SUPV) - free report >>

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