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CIB vs. NABZY: Which Stock Should Value Investors Buy Now?

Investors with an interest in Banks - Foreign stocks have likely encountered both Bancolombia (CIB) and National Australia Bank Ltd. (NABZY). 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Bancolombia has a Zacks Rank of #1 (Strong Buy), while National Australia Bank Ltd. has a Zacks Rank of #3 (Hold) right now. This means that CIB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

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Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CIB currently has a forward P/E ratio of 4.77, while NABZY has a forward P/E of 12.04. We also note that CIB has a PEG ratio of 0.27. 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. NABZY currently has a PEG ratio of 1.

Another notable valuation metric for CIB is its P/B ratio of 0.72. 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, NABZY has a P/B of 1.31.

Based on these metrics and many more, CIB holds a Value grade of B, while NABZY has a Value grade of D.

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


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BanColombia S.A. (CIB) : Free Stock Analysis Report
 
National Australia Bank Ltd. (NABZY) : Free Stock Analysis Report
 
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Zacks Investment Research