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

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Intesa Sanpaolo SpA (ISNPY - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Intesa Sanpaolo SpA has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that ISNPY likely has seen a stronger improvement to its earnings outlook than TD has recently. But this is only part of the picture for value investors.

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.

ISNPY currently has a forward P/E ratio of 7.18, while TD has a forward P/E of 9.21. We also note that ISNPY has a PEG ratio of 0.34. 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. TD currently has a PEG ratio of 1.15.

Another notable valuation metric for ISNPY is its P/B ratio of 0.74. 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 1.48.

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

ISNPY sticks out from TD in both our Zacks Rank and Style Scores models, so value investors will likely feel that ISNPY is the better option right now.


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

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