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NWG vs. NRDBY: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Banks - Foreign stocks have likely encountered both NatWest Group (NWG - Free Report) and Nordea Bank AB (NRDBY - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
NatWest Group and Nordea Bank AB are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NWG likely has seen a stronger improvement to its earnings outlook than NRDBY has recently. But this is just one factor that value investors are interested in.
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.
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.
NWG currently has a forward P/E ratio of 8.84, while NRDBY has a forward P/E of 9.25. We also note that NWG has a PEG ratio of 0.81. 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. NRDBY currently has a PEG ratio of 2.99.
Another notable valuation metric for NWG is its P/B ratio of 1.02. 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, NRDBY has a P/B of 1.51.
Based on these metrics and many more, NWG holds a Value grade of B, while NRDBY has a Value grade of D.
NWG stands above NRDBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NWG is the superior value option right now.
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NWG vs. NRDBY: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Foreign stocks have likely encountered both NatWest Group (NWG - Free Report) and Nordea Bank AB (NRDBY - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
NatWest Group and Nordea Bank AB are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NWG likely has seen a stronger improvement to its earnings outlook than NRDBY has recently. But this is just one factor that value investors are interested in.
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.
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.
NWG currently has a forward P/E ratio of 8.84, while NRDBY has a forward P/E of 9.25. We also note that NWG has a PEG ratio of 0.81. 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. NRDBY currently has a PEG ratio of 2.99.
Another notable valuation metric for NWG is its P/B ratio of 1.02. 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, NRDBY has a P/B of 1.51.
Based on these metrics and many more, NWG holds a Value grade of B, while NRDBY has a Value grade of D.
NWG stands above NRDBY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NWG is the superior value option right now.