ISNPY or HDB: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with Intesa Sanpaolo SpA (ISNPY) and HDFC Bank (HDB). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Intesa Sanpaolo SpA is sporting a Zacks Rank of #2 (Buy), while HDFC Bank has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ISNPY 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.
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.
ISNPY currently has a forward P/E ratio of 7.82, while HDB has a forward P/E of 20.97. We also note that ISNPY has a PEG ratio of 0.88. 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. HDB currently has a PEG ratio of 1.66.
Another notable valuation metric for ISNPY is its P/B ratio of 1. 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, HDB has a P/B of 2.59.
Based on these metrics and many more, ISNPY holds a Value grade of B, while HDB has a Value grade of C.
ISNPY stands above HDB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ISNPY is the superior value option right now.
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Intesa Sanpaolo SpA (ISNPY) : Free Stock Analysis Report
HDFC Bank Limited (HDB) : Free Stock Analysis Report