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BNPQY vs. UOVEY: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Banks - Foreign sector have probably already heard of BNP Paribas SA (BNPQY - Free Report) and 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.
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.
BNP Paribas SA has a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #4 (Sell) right now. This means that BNPQY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
BNPQY currently has a forward P/E ratio of 7.41, while UOVEY has a forward P/E of 8.86. We also note that BNPQY has a PEG ratio of 0.28. 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 0.34.
Another notable valuation metric for BNPQY is its P/B ratio of 0.58. 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 1.07.
Based on these metrics and many more, BNPQY holds a Value grade of A, while UOVEY has a Value grade of C.
BNPQY stands above UOVEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BNPQY is the superior value option right now.
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BNPQY vs. UOVEY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of BNP Paribas SA (BNPQY - Free Report) and 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.
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.
BNP Paribas SA has a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #4 (Sell) right now. This means that BNPQY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
BNPQY currently has a forward P/E ratio of 7.41, while UOVEY has a forward P/E of 8.86. We also note that BNPQY has a PEG ratio of 0.28. 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 0.34.
Another notable valuation metric for BNPQY is its P/B ratio of 0.58. 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 1.07.
Based on these metrics and many more, BNPQY holds a Value grade of A, while UOVEY has a Value grade of C.
BNPQY stands above UOVEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BNPQY is the superior value option right now.