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

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Grupo Supervielle (SUPV - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Grupo Supervielle and Banco Santander-Chile are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SUPV likely has seen a stronger improvement to its earnings outlook than BSAC has recently. But this is only part of the picture 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.

SUPV currently has a forward P/E ratio of 4.49, while BSAC has a forward P/E of 13.04. We also note that SUPV has a PEG ratio of 2.36. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BSAC currently has a PEG ratio of 3.82.

Another notable valuation metric for SUPV is its P/B ratio of 0.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BSAC has a P/B of 1.69.

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

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


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