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SVNLY 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 Svenska Handelsbanken Ab Publ (SVNLY - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Svenska Handelsbanken Ab Publ and Toronto-Dominion Bank are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SVNLY is likely seeing its earnings outlook improve to a greater extent. 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.

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.

SVNLY currently has a forward P/E ratio of 7.85, while TD has a forward P/E of 9.54. We also note that SVNLY has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TD currently has a PEG ratio of 1.54.

Another notable valuation metric for SVNLY is its P/B ratio of 1.03. 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, TD has a P/B of 1.32.

Based on these metrics and many more, SVNLY holds a Value grade of B, while TD has a Value grade of F.

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


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

Svenska Handelsbanken Ab Publ (SVNLY) - free report >>

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