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BMA or BSAC: Which Is the Better Value Stock Right Now?

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Investors with an interest in Banks - Foreign stocks have likely encountered both Banco Macro (BMA - Free Report) 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Banco Macro has a Zacks Rank of #1 (Strong Buy), while Banco Santander-Chile has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BMA likely has seen a stronger improvement to its earnings outlook than BSAC has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

BMA currently has a forward P/E ratio of 7.43, while BSAC has a forward P/E of 14.57. We also note that BMA has a PEG ratio of 0.54. 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 1.17.

Another notable valuation metric for BMA is its P/B ratio of 2.22. 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, BSAC has a P/B of 3.21.

These are just a few of the metrics contributing to BMA's Value grade of A and BSAC's Value grade of D.

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


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Macro Bank Inc. (BMA) - free report >>

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