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KB vs. SMFG: Which Stock Should Value Investors Buy Now?

Core Insights - Investors in the Banks - Foreign sector may consider KB Financial (KB) or Sumitomo Mitsui (SMFG) for potential value investments [1] - The Zacks Rank system, which emphasizes companies with positive earnings estimate revisions, is a key tool for identifying value stocks [2][3] Valuation Metrics - KB Financial has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Sumitomo Mitsui has a Zacks Rank of 4 (Sell) [3] - KB's forward P/E ratio is 7.12, significantly lower than SMFG's forward P/E of 12.04, suggesting KB may be undervalued [5] - KB's PEG ratio is 0.60, compared to SMFG's PEG ratio of 0.74, indicating better expected earnings growth relative to its valuation [5] - KB's P/B ratio is 0.7, while SMFG's P/B ratio is 1.07, further supporting the notion that KB is undervalued [6] - Based on these metrics, KB earns a Value grade of B, while SMFG receives a Value grade of C, making KB the more attractive option for value investors [6]