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.
BSAC or CMWAY: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander-Chile (BSAC - Free Report) or Commonwealth Bank of Australia Sponsored ADR (CMWAY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Banco Santander-Chile is sporting a Zacks Rank of #2 (Buy), while Commonwealth Bank of Australia Sponsored ADR has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BSAC is likely seeing its earnings outlook improve to a greater extent. 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.
BSAC currently has a forward P/E ratio of 11.07, while CMWAY has a forward P/E of 24.63. We also note that BSAC has a PEG ratio of 0.42. 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. CMWAY currently has a PEG ratio of 7.90.
Another notable valuation metric for BSAC is its P/B ratio of 2.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CMWAY has a P/B of 3.
These are just a few of the metrics contributing to BSAC's Value grade of A and CMWAY's Value grade of F.
BSAC stands above CMWAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BSAC is 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
BSAC or CMWAY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander-Chile (BSAC - Free Report) or Commonwealth Bank of Australia Sponsored ADR (CMWAY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Banco Santander-Chile is sporting a Zacks Rank of #2 (Buy), while Commonwealth Bank of Australia Sponsored ADR has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BSAC is likely seeing its earnings outlook improve to a greater extent. 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.
BSAC currently has a forward P/E ratio of 11.07, while CMWAY has a forward P/E of 24.63. We also note that BSAC has a PEG ratio of 0.42. 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. CMWAY currently has a PEG ratio of 7.90.
Another notable valuation metric for BSAC is its P/B ratio of 2.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CMWAY has a P/B of 3.
These are just a few of the metrics contributing to BSAC's Value grade of A and CMWAY's Value grade of F.
BSAC stands above CMWAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BSAC is the superior value option right now.