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BAP vs. NABZY: Which Stock Should Value Investors Buy Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Credicorp (BAP - Free Report) and National Australia Bank Ltd. (NABZY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Credicorp and National Australia Bank Ltd. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that BAP likely has seen a stronger improvement to its earnings outlook than NABZY has recently. However, value investors will care about much more than just this.

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.

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.

BAP currently has a forward P/E ratio of 9.93, while NABZY has a forward P/E of 16.07. We also note that BAP has a PEG ratio of 0.65. 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. NABZY currently has a PEG ratio of 4.13.

Another notable valuation metric for BAP is its P/B ratio of 1.71. 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, NABZY has a P/B of 1.78.

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

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


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

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