We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BNPQY vs. BNS: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Banks - Foreign sector might want to consider either BNP Paribas SA (BNPQY - Free Report) or Bank of Nova Scotia (BNS - Free Report) . 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.
Right now, BNP Paribas SA is sporting a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that BNPQY likely has seen a stronger improvement to its earnings outlook than BNS has recently. But this is just one factor that value investors are interested in.
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 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.
BNPQY currently has a forward P/E ratio of 8.67, while BNS has a forward P/E of 10.33. We also note that BNPQY has a PEG ratio of 0.64. 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 0.73.
Another notable valuation metric for BNPQY is its P/B ratio of 0.56. 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 1.39.
These metrics, and several others, help BNPQY earn a Value grade of A, while BNS has been given a Value grade of C.
BNPQY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BNPQY is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BNPQY vs. BNS: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Banks - Foreign sector might want to consider either BNP Paribas SA (BNPQY - Free Report) or Bank of Nova Scotia (BNS - Free Report) . 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.
Right now, BNP Paribas SA is sporting a Zacks Rank of #2 (Buy), while Bank of Nova Scotia has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that BNPQY likely has seen a stronger improvement to its earnings outlook than BNS has recently. But this is just one factor that value investors are interested in.
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 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.
BNPQY currently has a forward P/E ratio of 8.67, while BNS has a forward P/E of 10.33. We also note that BNPQY has a PEG ratio of 0.64. 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 0.73.
Another notable valuation metric for BNPQY is its P/B ratio of 0.56. 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 1.39.
These metrics, and several others, help BNPQY earn a Value grade of A, while BNS has been given a Value grade of C.
BNPQY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BNPQY is likely the superior value option right now.