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KBCSY vs. IBN: Which Stock Is the Better Value Option?

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Investors interested in Banks - Foreign stocks are likely familiar with KBC Group SA (KBCSY - Free Report) and ICICI Bank Limited (IBN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, KBC Group SA has a Zacks Rank of #2 (Buy), while ICICI Bank Limited 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 KBCSY has an improving earnings outlook. But this is just one piece of the puzzle 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.

KBCSY currently has a forward P/E ratio of 8.69, while IBN has a forward P/E of 16.42. We also note that KBCSY has a PEG ratio of 1.80. 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. IBN currently has a PEG ratio of 2.12.

Another notable valuation metric for KBCSY is its P/B ratio of 0.93. 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, IBN has a P/B of 2.40.

These metrics, and several others, help KBCSY earn a Value grade of B, while IBN has been given a Value grade of C.

KBCSY stands above IBN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KBCSY is the superior value option right now.


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