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BSBR or HSNGY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander-Brazil (BSBR - Free Report) or Hang Seng Bank Ltd. (HSNGY - Free Report) . 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 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.

Banco Santander-Brazil and Hang Seng Bank Ltd. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that BSBR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

BSBR currently has a forward P/E ratio of 9.87, while HSNGY has a forward P/E of 17.61. We also note that BSBR has a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HSNGY currently has a PEG ratio of 2.30.

Another notable valuation metric for BSBR is its P/B ratio of 1.44. 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, HSNGY has a P/B of 1.57.

These are just a few of the metrics contributing to BSBR's Value grade of A and HSNGY's Value grade of D.

BSBR sticks out from HSNGY in both our Zacks Rank and Style Scores models, so value investors will likely feel that BSBR is the better option right now.


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Banco Santander Brasil SA (BSBR) - free report >>

Hang Seng Bank Ltd. (HSNGY) - free report >>

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