BSMX or NRDBY: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with Santander Mexico (BSMX) and Nordea Bank AB (NRDBY). 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.
Both Santander Mexico and Nordea Bank AB have 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 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.
BSMX currently has a forward P/E ratio of 6.77, while NRDBY has a forward P/E of 9. We also note that BSMX has a PEG ratio of 0.67. 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. NRDBY currently has a PEG ratio of 1.01.
Another notable valuation metric for BSMX is its P/B ratio of 0.96. 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, NRDBY has a P/B of 1.12.
These are just a few of the metrics contributing to BSMX's Value grade of B and NRDBY's Value grade of F.
Both BSMX and NRDBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BSMX is the superior value option right now.
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Grupo Financiero Santander Mexico S.A. B. de C.V. (BSMX) : Free Stock Analysis Report
Nordea Bank AB (NRDBY) : Free Stock Analysis Report
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