BNPQY vs. ITUB: Which Stock Is the Better Value Option?

Core Viewpoint - The article compares BNP Paribas SA (BNPQY) and Banco Itau (ITUB) to determine which stock is more attractive for value investors [1] Group 1: Zacks Rank and Earnings Outlook - BNP Paribas SA has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Banco Itau has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system favors stocks with positive revisions to earnings estimates, suggesting that BNPQY has an improving earnings outlook [3] Group 2: Valuation Metrics - BNPQY has a forward P/E ratio of 7.58, compared to ITUB's forward P/E of 8.89, indicating that BNPQY may be undervalued [5] - The PEG ratio for BNPQY is 0.72, while ITUB's PEG ratio is 1.00, suggesting that BNPQY has a better valuation relative to its expected earnings growth [5] - BNPQY's P/B ratio is 0.75, significantly lower than ITUB's P/B of 1.98, further indicating that BNPQY is undervalued [6] Group 3: Value Grades - Based on the valuation metrics, BNPQY has a Value grade of A, while ITUB has a Value grade of C, highlighting BNPQY as the superior value option [6]