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BNPQY vs. TD: Which Stock Is the Better Value Option?

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Investors with an interest in Banks - Foreign stocks have likely encountered both BNP Paribas SA (BNPQY - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

BNP Paribas 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 BNPQY 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 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BNPQY currently has a forward P/E ratio of 6.90, while TD has a forward P/E of 9.02. We also note that BNPQY has a PEG ratio of 0.34. 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 1.12.

Another notable valuation metric for BNPQY is its P/B ratio of 0.61. 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 are just a few of the metrics contributing to BNPQY's Value grade of A and TD's Value grade of C.

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


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Toronto Dominion Bank (The) (TD) - free report >>

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