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KBCSY or TD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Banks - Foreign sector have probably already heard of KBC Group SA (KBCSY - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
KBC Group SA has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KBCSY likely has seen a stronger improvement to its earnings outlook than TD has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KBCSY currently has a forward P/E ratio of 7.15, while TD has a forward P/E of 9.46. We also note that KBCSY has a PEG ratio of 1.16. 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. TD currently has a PEG ratio of 1.35.
Another notable valuation metric for KBCSY is its P/B ratio of 0.90. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TD has a P/B of 1.45.
These metrics, and several others, help KBCSY earn a Value grade of B, while TD has been given a Value grade of C.
KBCSY stands above TD 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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KBCSY or TD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of KBC Group SA (KBCSY - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
KBC Group SA has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KBCSY likely has seen a stronger improvement to its earnings outlook than TD has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KBCSY currently has a forward P/E ratio of 7.15, while TD has a forward P/E of 9.46. We also note that KBCSY has a PEG ratio of 1.16. 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. TD currently has a PEG ratio of 1.35.
Another notable valuation metric for KBCSY is its P/B ratio of 0.90. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TD has a P/B of 1.45.
These metrics, and several others, help KBCSY earn a Value grade of B, while TD has been given a Value grade of C.
KBCSY stands above TD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KBCSY is the superior value option right now.