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DNBBY vs. CMWAY: 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 DNB Bank ASA (DNBBY - Free Report) or Commonwealth Bank of Australia Sponsored ADR (CMWAY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
DNB Bank ASA and Commonwealth Bank of Australia Sponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that DNBBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
DNBBY currently has a forward P/E ratio of 9.22, while CMWAY has a forward P/E of 26.55. We also note that DNBBY has a PEG ratio of 8.45. 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. CMWAY currently has a PEG ratio of 8.56.
Another notable valuation metric for DNBBY is its P/B ratio of 1.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CMWAY has a P/B of 3.55.
These are just a few of the metrics contributing to DNBBY's Value grade of B and CMWAY's Value grade of F.
DNBBY stands above CMWAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DNBBY is the superior value option right now.
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DNBBY vs. CMWAY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Foreign sector might want to consider either DNB Bank ASA (DNBBY - Free Report) or Commonwealth Bank of Australia Sponsored ADR (CMWAY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
DNB Bank ASA and Commonwealth Bank of Australia Sponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that DNBBY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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.
DNBBY currently has a forward P/E ratio of 9.22, while CMWAY has a forward P/E of 26.55. We also note that DNBBY has a PEG ratio of 8.45. 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. CMWAY currently has a PEG ratio of 8.56.
Another notable valuation metric for DNBBY is its P/B ratio of 1.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CMWAY has a P/B of 3.55.
These are just a few of the metrics contributing to DNBBY's Value grade of B and CMWAY's Value grade of F.
DNBBY stands above CMWAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DNBBY is the superior value option right now.