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EWBC vs. SIVB: Which Stock Is the Better Value Option?
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Investors with an interest in Banks - West stocks have likely encountered both 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, East West Bancorp has a Zacks Rank of #2 (Buy), while SVB Financial has a Zacks Rank of #3 (Hold). 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 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 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 12.84, while SIVB has a forward P/E of 19.34. We also note that EWBC has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SIVB currently has a PEG ratio of 2.42.
Another notable valuation metric for EWBC is its P/B ratio of 1.94. 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, SIVB has a P/B of 3.20.
Based on these metrics and many more, EWBC holds a Value grade of B, while SIVB has a Value grade of C.
EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than SIVB, so it seems like value investors will conclude that EWBC is the superior option right now.
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EWBC vs. SIVB: Which Stock Is the Better Value Option?
Investors with an interest in Banks - West stocks have likely encountered both 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, East West Bancorp has a Zacks Rank of #2 (Buy), while SVB Financial has a Zacks Rank of #3 (Hold). 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 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 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 12.84, while SIVB has a forward P/E of 19.34. We also note that EWBC has a PEG ratio of 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SIVB currently has a PEG ratio of 2.42.
Another notable valuation metric for EWBC is its P/B ratio of 1.94. 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, SIVB has a P/B of 3.20.
Based on these metrics and many more, EWBC holds a Value grade of B, while SIVB has a Value grade of C.
EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than SIVB, so it seems like value investors will conclude that EWBC is the superior option right now.