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EBKDY or TD: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Banks - Foreign sector might want to consider either Erste Group Bank AG (EBKDY) or Toronto-Dominion Bank (TD). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Erste Group Bank AG has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EBKDY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.


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.

EBKDY currently has a forward P/E ratio of 6.07, while TD has a forward P/E of 10.22. We also note that EBKDY has a PEG ratio of 1.02. 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. TD currently has a PEG ratio of 1.84.

Another notable valuation metric for EBKDY 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, TD has a P/B of 1.41.

These are just a few of the metrics contributing to EBKDY's Value grade of B and TD's Value grade of F.

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

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Erste Group Bank AG (EBKDY) : Free Stock Analysis Report

Toronto Dominion Bank (The) (TD) : Free Stock Analysis Report

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Zacks Investment Research