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SUPV vs. RY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Grupo Supervielle (SUPV) and Royal Bank (RY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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 has a Zacks Rank of #2 (Buy), while Royal Bank has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that SUPV likely has seen a stronger improvement to its earnings outlook than RY has recently. But this is just one piece of the puzzle 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SUPV currently has a forward P/E ratio of 2.53, while RY has a forward P/E of 9.96. We also note that SUPV has a PEG ratio of 1.33. 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. RY currently has a PEG ratio of 1.92.

Another notable valuation metric for SUPV is its P/B ratio of 0.31. 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, RY has a P/B of 1.44.

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

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


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Grupo Supervielle S.A. (SUPV) : Free Stock Analysis Report
 
Royal Bank Of Canada (RY) : Free Stock Analysis Report
 
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