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DB vs. WBK: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Banks - Foreign stocks have likely encountered both Deutsche Bank (DB - Free Report) and Westpac Banking Corporation . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Deutsche Bank and Westpac Banking Corporation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DB is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DB currently has a forward P/E ratio of 9.12, while WBK has a forward P/E of 14.04. We also note that DB has a PEG ratio of 0.20. 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. WBK currently has a PEG ratio of 0.60.
Another notable valuation metric for DB is its P/B ratio of 0.34. 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, WBK has a P/B of 1.22.
These are just a few of the metrics contributing to DB's Value grade of B and WBK's Value grade of C.
DB sticks out from WBK in both our Zacks Rank and Style Scores models, so value investors will likely feel that DB is the better option right now.
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DB vs. WBK: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Foreign stocks have likely encountered both Deutsche Bank (DB - Free Report) and Westpac Banking Corporation . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Deutsche Bank and Westpac Banking Corporation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DB is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DB currently has a forward P/E ratio of 9.12, while WBK has a forward P/E of 14.04. We also note that DB has a PEG ratio of 0.20. 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. WBK currently has a PEG ratio of 0.60.
Another notable valuation metric for DB is its P/B ratio of 0.34. 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, WBK has a P/B of 1.22.
These are just a few of the metrics contributing to DB's Value grade of B and WBK's Value grade of C.
DB sticks out from WBK in both our Zacks Rank and Style Scores models, so value investors will likely feel that DB is the better option right now.