We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BBVA vs. UOVEY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Bilbao (BBVA - Free Report) or United Overseas Bank Ltd. (UOVEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Banco Bilbao has a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BBVA has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BBVA currently has a forward P/E ratio of 6.60, while UOVEY has a forward P/E of 7.99. We also note that BBVA has a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UOVEY currently has a PEG ratio of 1.78.
Another notable valuation metric for BBVA is its P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, UOVEY has a P/B of 1.03.
These metrics, and several others, help BBVA earn a Value grade of B, while UOVEY has been given a Value grade of C.
BBVA has seen stronger estimate revision activity and sports more attractive valuation metrics than UOVEY, so it seems like value investors will conclude that BBVA is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BBVA vs. UOVEY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Bilbao (BBVA - Free Report) or United Overseas Bank Ltd. (UOVEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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, Banco Bilbao has a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BBVA has an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BBVA currently has a forward P/E ratio of 6.60, while UOVEY has a forward P/E of 7.99. We also note that BBVA has a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UOVEY currently has a PEG ratio of 1.78.
Another notable valuation metric for BBVA is its P/B ratio of 0.97. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, UOVEY has a P/B of 1.03.
These metrics, and several others, help BBVA earn a Value grade of B, while UOVEY has been given a Value grade of C.
BBVA has seen stronger estimate revision activity and sports more attractive valuation metrics than UOVEY, so it seems like value investors will conclude that BBVA is the superior option right now.