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

Core Viewpoint - Investors in the Banks - Foreign sector may find Toronto-Dominion Bank (TD) and ICICI Bank Limited (IBN) as potential investment options, with a closer examination needed to determine which stock is more appealing to value investors [1] Group 1: Zacks Rank and Earnings Estimates - Toronto-Dominion Bank currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to ICICI Bank Limited, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank is a strategy that focuses on companies with positive earnings estimate revisions, suggesting a more optimistic analyst outlook for TD [2] Group 2: Valuation Metrics - Value investors utilize various valuation metrics to assess whether a company is undervalued, including the P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - Toronto-Dominion Bank has a forward P/E ratio of 14.72, while ICICI Bank Limited has a higher forward P/E of 18.74 [5] - TD's PEG ratio is 1.32, which is comparable to IBN's PEG ratio of 1.39, indicating similar expected earnings growth rates [5] - TD's P/B ratio stands at 1.92, significantly lower than IBN's P/B ratio of 2.65, suggesting that TD may be more attractively valued [6] - These metrics contribute to TD's Value grade of B and IBN's Value grade of C, reinforcing the notion that TD is the more favorable option for value investors at this time [6]