Investors interested in Banks - West stocks are likely familiar with East West Bancorp (EWBC - Free Report) and SVB Financial . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
East West Bancorp has a Zacks Rank of #2 (Buy), while SVB Financial has a Zacks Rank of #3 (Hold) right now. This means that EWBC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EWBC currently has a forward P/E ratio of 12.39, while SIVB has a forward P/E of 18.51. We also note that EWBC has a PEG ratio of 1.24. 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. SIVB currently has a PEG ratio of 2.31.
Another notable valuation metric for EWBC is its P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SIVB has a P/B of 3.15.
These are just a few of the metrics contributing to EWBC's Value grade of B and SIVB's Value grade of C.
EWBC stands above SIVB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EWBC is the superior value option right now.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
Investors interested in Banks - West stocks are likely familiar with East West Bancorp (EWBC - Free Report) and SVB Financial . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
East West Bancorp has a Zacks Rank of #2 (Buy), while SVB Financial has a Zacks Rank of #3 (Hold) right now. This means that EWBC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EWBC currently has a forward P/E ratio of 12.39, while SIVB has a forward P/E of 18.51. We also note that EWBC has a PEG ratio of 1.24. 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. SIVB currently has a PEG ratio of 2.31.
Another notable valuation metric for EWBC is its P/B ratio of 1.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SIVB has a P/B of 3.15.
These are just a few of the metrics contributing to EWBC's Value grade of B and SIVB's Value grade of C.
EWBC stands above SIVB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EWBC is the superior value option right now.
Buy 5 Stocks BEFORE Election Day
Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
Don’t Wait. Download FREE >>
Get the latest research report on EWBC - FREE