DNBBY vs. IBN: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of DNB Bank ASA (DNBBY) and ICICI Bank Limited (IBN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both DNB Bank ASA and ICICI Bank Limited are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
DNBBY currently has a forward P/E ratio of 8.56, while IBN has a forward P/E of 17.91. We also note that DNBBY has a PEG ratio of 1.57. 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. IBN currently has a PEG ratio of 1.60.
Another notable valuation metric for DNBBY is its P/B ratio of 1.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IBN has a P/B of 2.87.
Based on these metrics and many more, DNBBY holds a Value grade of B, while IBN has a Value grade of D.
Both DNBBY and IBN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DNBBY is the superior value option right now.
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DNB Bank ASA (DNBBY) : Free Stock Analysis Report
ICICI Bank Limited (IBN) : Free Stock Analysis Report
