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SAN vs. SMFG: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander (SAN - Free Report) or Sumitomo Mitsui (SMFG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Banco Santander and Sumitomo Mitsui are sporting a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SAN currently has a forward P/E ratio of 5.79, while SMFG has a forward P/E of 12.20. We also note that SAN has a PEG ratio of 0.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SMFG currently has a PEG ratio of 0.88.
Another notable valuation metric for SAN is its P/B ratio of 0.69. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SMFG has a P/B of 0.81.
These are just a few of the metrics contributing to SAN's Value grade of B and SMFG's Value grade of C.
Both SAN and SMFG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SAN is the superior value option right now.
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SAN vs. SMFG: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander (SAN - Free Report) or Sumitomo Mitsui (SMFG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Banco Santander and Sumitomo Mitsui are sporting a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SAN currently has a forward P/E ratio of 5.79, while SMFG has a forward P/E of 12.20. We also note that SAN has a PEG ratio of 0.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SMFG currently has a PEG ratio of 0.88.
Another notable valuation metric for SAN is its P/B ratio of 0.69. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SMFG has a P/B of 0.81.
These are just a few of the metrics contributing to SAN's Value grade of B and SMFG's Value grade of C.
Both SAN and SMFG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SAN is the superior value option right now.