BBVA vs. RY: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The article compares Banco Bilbao (BBVA) and Royal Bank (RY) to determine which stock is a better option for value investors, highlighting BBVA's stronger performance in key metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - BBVA has a Zacks Rank of 2 (Buy), while RY has a Zacks Rank of 4 (Sell), indicating a stronger earnings outlook for BBVA [3]. - The Zacks Rank emphasizes stocks with positive earnings estimate revisions, which is a critical factor for value investors [2]. Group 2: Valuation Metrics - BBVA's forward P/E ratio is 10.88, compared to RY's 13.53, suggesting BBVA is undervalued relative to RY [5]. - BBVA has a PEG ratio of 1.06, while RY's PEG ratio is 1.38, indicating BBVA's expected earnings growth is more favorable [5]. - BBVA's P/B ratio is 1.62, significantly lower than RY's P/B of 2.27, further supporting BBVA's valuation as more attractive [6]. Group 3: Value Grades - BBVA has received a Value grade of B, while RY has a Value grade of C, reinforcing the notion that BBVA is the better option for value investors [6].