Investors with an interest in Banks - Foreign stocks have likely encountered both DNB Bank ASA (DNBBY) and HDFC Bank (HDB). 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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 HDFC Bank are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that DNBBY likely has seen a stronger improvement to its earnings outlook than HDB has recently. But this is just one piece of the puzzle for value investors.

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.

DNBBY currently has a forward P/E ratio of 8.26, while HDB has a forward P/E of 20.90. We also note that DNBBY has a PEG ratio of 1.52. 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. HDB currently has a PEG ratio of 2.01.

Another notable valuation metric for DNBBY is its P/B ratio of 1.34. 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, HDB has a P/B of 2.66.

These are just a few of the metrics contributing to DNBBY's Value grade of B and HDB's Value grade of C.

DNBBY has seen stronger estimate revision activity and sports more attractive valuation metrics than HDB, so it seems like value investors will conclude that DNBBY is the superior option right now.

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DNB Bank ASA (DNBBY):Free Stock Analysis Report

HDFC Bank Limited (HDB):Free Stock Analysis Report

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