ISNPY vs. CM: Which Stock Is the Better Value Option?
Investors with an interest in Banks - Foreign stocks have likely encountered both Intesa Sanpaolo SpA (ISNPY) and Canadian Imperial Bank (CM). 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Right now, Intesa Sanpaolo SpA is sporting a Zacks Rank of #2 (Buy), while Canadian Imperial Bank has a Zacks Rank of #3 (Hold). This means that ISNPY'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 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 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.
ISNPY currently has a forward P/E ratio of 7.23, while CM has a forward P/E of 9.51. We also note that ISNPY has a PEG ratio of 0.91. 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. CM currently has a PEG ratio of 1.89.
Another notable valuation metric for ISNPY is its P/B ratio of 0.92. 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, CM has a P/B of 1.22.
These are just a few of the metrics contributing to ISNPY's Value grade of B and CM's Value grade of C.
ISNPY sticks out from CM in both our Zacks Rank and Style Scores models, so value investors will likely feel that ISNPY is the better option right now.
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Intesa Sanpaolo SpA (ISNPY) : Free Stock Analysis Report
Canadian Imperial Bank of Commerce (CM) : Free Stock Analysis Report