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SUPV or WBK: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Grupo Supervielle (SUPV - Free Report) and Westpac Banking Corporation . 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 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, Grupo Supervielle is sporting a Zacks Rank of #2 (Buy), while Westpac Banking Corporation 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 SUPV is likely seeing its earnings outlook improve to a greater extent. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SUPV currently has a forward P/E ratio of 5.58, while WBK has a forward P/E of 14.49. We also note that SUPV has a PEG ratio of 2.94. 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. WBK currently has a PEG ratio of 6.53.

Another notable valuation metric for SUPV is its P/B ratio of 0.67. 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, WBK has a P/B of 0.93.

These are just a few of the metrics contributing to SUPV's Value grade of A and WBK's Value grade of C.

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


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