BNS or RY: Which Is the Better Value Stock Right Now?

Core Viewpoint - The article compares Bank of Nova Scotia (BNS) and Royal Bank (RY) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Bank of Nova Scotia has a Zacks Rank of 2 (Buy), while Royal Bank has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for BNS [3] - The Zacks Rank focuses on companies with positive earnings estimate revisions, suggesting that BNS is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - BNS has a forward P/E ratio of 10.13, compared to RY's forward P/E of 12.76, indicating that BNS may be undervalued relative to RY [5] - The PEG ratio for BNS is 1.54, while RY's PEG ratio is 1.86, suggesting that BNS offers better value when considering expected earnings growth [5] - BNS's P/B ratio is 1.18, significantly lower than RY's P/B of 2.05, further supporting the argument that BNS is the more attractive value option [6] Group 3: Value Grades - BNS has a Value grade of B, while RY has a Value grade of D, indicating that BNS is perceived as a better value investment based on various financial metrics [6]