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EWBC vs. BOH: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Banks - West sector might want to consider either East West Bancorp (EWBC - Free Report) or 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, East West Bancorp has a Zacks Rank of #2 (Buy), while Bank of Hawaii has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EWBC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EWBC currently has a forward P/E ratio of 8.53, while BOH has a forward P/E of 15.31. We also note that EWBC has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BOH currently has a PEG ratio of 1.91.
Another notable valuation metric for EWBC is its P/B ratio of 1.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BOH has a P/B of 2.68.
These metrics, and several others, help EWBC earn a Value grade of B, while BOH has been given a Value grade of C.
EWBC stands above BOH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EWBC is the superior value option right now.
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EWBC vs. BOH: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - West sector might want to consider either East West Bancorp (EWBC - Free Report) or 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, East West Bancorp has a Zacks Rank of #2 (Buy), while Bank of Hawaii has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EWBC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EWBC currently has a forward P/E ratio of 8.53, while BOH has a forward P/E of 15.31. We also note that EWBC has a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BOH currently has a PEG ratio of 1.91.
Another notable valuation metric for EWBC is its P/B ratio of 1.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BOH has a P/B of 2.68.
These metrics, and several others, help EWBC earn a Value grade of B, while BOH has been given a Value grade of C.
EWBC stands above BOH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EWBC is the superior value option right now.