NWG vs. CM: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between NatWest Group (NWG) and Canadian Imperial Bank (CM) indicates that NWG is more attractive to value investors due to its stronger earnings estimate revision activity and more favorable valuation metrics [3][7]. Valuation Metrics - NWG has a forward P/E ratio of 9.15, while CM has a forward P/E of 13.02, suggesting that NWG is undervalued compared to CM [5]. - The PEG ratio for NWG is 0.84, indicating a better valuation relative to its expected earnings growth compared to CM's PEG ratio of 1.69 [5]. - NWG's P/B ratio is 1.05, which is lower than CM's P/B of 1.83, further supporting NWG's more attractive valuation [6]. Analyst Outlook - NWG holds a Zacks Rank of 2 (Buy), reflecting a more positive analyst outlook compared to CM's Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for NWG suggests a more favorable future performance as perceived by analysts [7]. Value Grades - Based on various valuation metrics, NWG has a Value grade of B, while CM has a Value grade of C, indicating that NWG is viewed as a better value investment [6].