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

Core Viewpoint - Investors are considering Banco Santander-Brazil (BSBR) and National Australia Bank Ltd. (NABZY) for potential value opportunities in the Banks - Foreign sector [1] Group 1: Zacks Rank and Earnings Outlook - BSBR has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to NABZY, which has a Zacks Rank of 3 (Hold) [3] - The improvement in BSBR's earnings outlook is a significant factor for value investors [3] Group 2: Valuation Metrics - BSBR has a forward P/E ratio of 7.19, while NABZY has a forward P/E of 15.74, suggesting BSBR is more attractively priced [5] - BSBR's PEG ratio is 0.79, indicating better expected earnings growth relative to its price compared to NABZY's PEG ratio of 8.37 [5] - BSBR's P/B ratio is 0.86, compared to NABZY's P/B of 1.72, further highlighting BSBR's valuation advantage [6] Group 3: Value Grades - BSBR has earned a Value grade of B, while NABZY has a Value grade of D, reflecting BSBR's superior valuation metrics [6] - Stronger estimate revision activity and more attractive valuation metrics position BSBR as the preferred choice for value investors [7]