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EWBC vs. BOH: Which Stock Is the Better Value Option?
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Investors with an interest in Banks - West stocks have likely encountered both East West Bancorp (EWBC - Free Report) and Bank of Hawaii (BOH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, East West Bancorp is sporting a Zacks Rank of #2 (Buy), while Bank of Hawaii has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EWBC likely has seen a stronger improvement to its earnings outlook than BOH has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
EWBC currently has a forward P/E ratio of 9.09, while BOH has a forward P/E of 14.15. We also note that EWBC has a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOH currently has a PEG ratio of 1.77.
Another notable valuation metric for EWBC is its P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BOH has a P/B of 2.70.
These metrics, and several others, help EWBC earn a Value grade of B, while BOH has been given a Value grade of C.
EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than BOH, so it seems like value investors will conclude that EWBC is the superior option right now.
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EWBC vs. BOH: Which Stock Is the Better Value Option?
Investors with an interest in Banks - West stocks have likely encountered both East West Bancorp (EWBC - Free Report) and Bank of Hawaii (BOH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, East West Bancorp is sporting a Zacks Rank of #2 (Buy), while Bank of Hawaii has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EWBC likely has seen a stronger improvement to its earnings outlook than BOH has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
EWBC currently has a forward P/E ratio of 9.09, while BOH has a forward P/E of 14.15. We also note that EWBC has a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BOH currently has a PEG ratio of 1.77.
Another notable valuation metric for EWBC is its P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BOH has a P/B of 2.70.
These metrics, and several others, help EWBC earn a Value grade of B, while BOH has been given a Value grade of C.
EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than BOH, so it seems like value investors will conclude that EWBC is the superior option right now.