SHG vs. CM: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The article compares Shinhan Financial (SHG) and Canadian Imperial Bank (CM) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Both SHG and CM currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - The Zacks Rank strategy targets companies with favorable earnings estimate trends, which is a key consideration for investors [2] Group 2: Valuation Metrics - SHG has a forward P/E ratio of 6.13, significantly lower than CM's forward P/E of 11.65, suggesting SHG may be undervalued [5] - The PEG ratio for SHG is 0.53, while CM's PEG ratio is 1.49, indicating SHG has a better expected EPS growth relative to its price [5] - SHG's P/B ratio is 0.52, compared to CM's P/B of 1.63, further supporting the notion that SHG is undervalued [6] - Based on these valuation metrics, SHG is rated with a Value grade of A, while CM has a Value grade of C, indicating SHG is the superior value option [6]