UNCRY or BNS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Banks - Foreign sector might want to consider either UniCredit S.p.A. Unsponsored ADR (UNCRY) or Bank of Nova Scotia (BNS). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, UniCredit S.p.A. Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UNCRY has an improving earnings outlook. 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.
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.
UNCRY currently has a forward P/E ratio of 5.50, while BNS has a forward P/E of 8.72. We also note that UNCRY has a PEG ratio of 0.23. 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. BNS currently has a PEG ratio of 2.15.
Another notable valuation metric for UNCRY is its P/B ratio of 0.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BNS has a P/B of 1.04.
Based on these metrics and many more, UNCRY holds a Value grade of B, while BNS has a Value grade of C.
UNCRY has seen stronger estimate revision activity and sports more attractive valuation metrics than BNS, so it seems like value investors will conclude that UNCRY is the superior option right now.
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UniCredit S.p.A. Unsponsored ADR (UNCRY) : Free Stock Analysis Report
Bank of Nova Scotia (The) (BNS) : Free Stock Analysis Report
