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SVNLY vs. NABZY: 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 National Australia Bank Ltd. (NABZY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Svenska Handelsbanken Ab Publ has a Zacks Rank of #2 (Buy), while National Australia Bank Ltd. has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SVNLY has an improving earnings outlook. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SVNLY currently has a forward P/E ratio of 7.77, while NABZY has a forward P/E of 17. We also note that SVNLY has a PEG ratio of 1.33. 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. NABZY currently has a PEG ratio of 4.59.

Another notable valuation metric for SVNLY is its P/B ratio of 1.08. 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, NABZY has a P/B of 1.94.

These are just a few of the metrics contributing to SVNLY's Value grade of B and NABZY's Value grade of D.

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


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National Australia Bank Ltd. (NABZY) - free report >>

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

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