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OSVBF vs. BSAC: Which Stock Is the Better Value Option?

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Investors with an interest in Banks - Foreign stocks have likely encountered both OneSavings Bank PLC and Banco Santander-Chile (BSAC - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, OneSavings Bank PLC has a Zacks Rank of #2 (Buy), while Banco Santander-Chile has a Zacks Rank of #4 (Sell). 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 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 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.

OSVBF currently has a forward P/E ratio of 7.64, while BSAC has a forward P/E of 14.62. We also note that OSVBF has a PEG ratio of 1.09. 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. BSAC currently has a PEG ratio of 1.18.

Another notable valuation metric for OSVBF is its P/B ratio of 1.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BSAC has a P/B of 2.92.

These metrics, and several others, help OSVBF earn a Value grade of B, while BSAC has been given a Value grade of D.

OSVBF sticks out from BSAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that OSVBF is the better option right now.


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