LYG or IBN: Which Is the Better Value Stock Right Now?

Core Viewpoint - The article compares Lloyds (LYG) and ICICI Bank Limited (IBN) to determine which stock is more attractive to value investors, highlighting the importance of various valuation metrics and Zacks Rank in the analysis [1][3]. Group 1: Zacks Rank and Earnings Outlook - Lloyds currently has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while ICICI Bank has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for Lloyds makes it stand out in the Zacks Rank model, suggesting it may be the superior value option [7]. Group 2: Valuation Metrics - Lloyds has a forward P/E ratio of 11.73, significantly lower than ICICI Bank's forward P/E of 19.36, indicating that Lloyds may be undervalued [5]. - The PEG ratio for Lloyds is 0.96, while ICICI Bank's PEG ratio is 2.08, further suggesting that Lloyds offers better value relative to its expected earnings growth [5]. - Lloyds has a P/B ratio of 0.97 compared to ICICI Bank's P/B of 2.97, reinforcing the notion that Lloyds is more attractively priced based on its book value [6]. - These metrics contribute to Lloyds receiving a Value grade of B, while ICICI Bank has a Value grade of C [6].