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WF vs. OAK: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Financial - Investment Management sector might want to consider either Woori Bank (WF - Free Report) or Oaktree Capital Group, LLC . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Woori Bank is sporting a Zacks Rank of #1 (Strong Buy), while Oaktree Capital Group, LLC has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that WF is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.

WF currently has a forward P/E ratio of 5.05, while OAK has a forward P/E of 14.26. We also note that WF has a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OAK currently has a PEG ratio of 1.22.

Another notable valuation metric for WF is its P/B ratio of 0.48. 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, OAK has a P/B of 3.22.

Based on these metrics and many more, WF holds a Value grade of A, while OAK has a Value grade of D.

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


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