CIB vs. TD: Which Stock Is the Better Value Option?
Investors with an interest in Banks - Foreign stocks have likely encountered both Bancolombia (CIB) and Toronto-Dominion Bank (TD). But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Bancolombia is sporting a Zacks Rank of #1 (Strong Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CIB likely has seen a stronger improvement to its earnings outlook than TD has recently. 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.
CIB currently has a forward P/E ratio of 7.32, while TD has a forward P/E of 11.31. We also note that CIB has a PEG ratio of 0.45. 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. TD currently has a PEG ratio of 1.38.
Another notable valuation metric for CIB is its P/B ratio of 0.92. 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, TD has a P/B of 1.73.
Based on these metrics and many more, CIB holds a Value grade of B, while TD has a Value grade of C.
CIB 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 CIB is likely the superior value option right now.
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BanColombia S.A. (CIB) : Free Stock Analysis Report
Toronto Dominion Bank The (TD) : Free Stock Analysis Report
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