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OSVBF vs. BAP: 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 OneSavings Bank PLC and Credicorp (BAP - 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.

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.

Right now, OneSavings Bank PLC is sporting a Zacks Rank of #2 (Buy), while Credicorp has a Zacks Rank of #3 (Hold). This means that OSVBF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

OSVBF currently has a forward P/E ratio of 8.43, while BAP has a forward P/E of 14.43. We also note that OSVBF has a PEG ratio of 1.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAP currently has a PEG ratio of 1.24.

Another notable valuation metric for OSVBF is its P/B ratio of 1.90. 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, BAP has a P/B of 2.73.

These are just a few of the metrics contributing to OSVBF's Value grade of B and BAP's Value grade of D.

OSVBF has seen stronger estimate revision activity and sports more attractive valuation metrics than BAP, so it seems like value investors will conclude that OSVBF is the superior option right now.


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