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ISNPY or NRDBY: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Banks - Foreign sector have probably already heard of Intesa Sanpaolo SpA (ISNPY) and Nordea Bank AB (NRDBY). But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Intesa Sanpaolo SpA and Nordea Bank AB are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

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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.

ISNPY currently has a forward P/E ratio of 7.08, while NRDBY has a forward P/E of 7.76. We also note that ISNPY has a PEG ratio of 0.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NRDBY currently has a PEG ratio of 0.72.

Another notable valuation metric for ISNPY is its P/B ratio of 0.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NRDBY has a P/B of 1.16.

These metrics, and several others, help ISNPY earn a Value grade of B, while NRDBY has been given a Value grade of D.

Both ISNPY and NRDBY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ISNPY is the superior value option right now.

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Intesa Sanpaolo SpA (ISNPY) : Free Stock Analysis Report

Nordea Bank AB (NRDBY) : Free Stock Analysis Report

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Zacks Investment Research