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EWBC or SIVB: Which Is the Better Value Stock Right Now?
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Investors interested in Banks - West stocks are likely familiar with East West Bancorp (EWBC - Free Report) and SVB Financial . 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 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). Investors should feel comfortable knowing that EWBC likely has seen a stronger improvement to its earnings outlook than SIVB has recently. But this is only part of the picture 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.
EWBC currently has a forward P/E ratio of 12.79, while SIVB has a forward P/E of 22.35. We also note that EWBC has a PEG ratio of 1.28. 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 2.79.
Another notable valuation metric for EWBC is its P/B ratio of 1.96. 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 3.16.
These are just a few of the metrics contributing to EWBC's Value grade of B and SIVB's Value grade of C.
EWBC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EWBC is likely the superior value option right now.
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EWBC or SIVB: Which Is the Better Value Stock Right Now?
Investors interested in Banks - West stocks are likely familiar with East West Bancorp (EWBC - Free Report) and SVB Financial . 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 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). Investors should feel comfortable knowing that EWBC likely has seen a stronger improvement to its earnings outlook than SIVB has recently. But this is only part of the picture 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.
EWBC currently has a forward P/E ratio of 12.79, while SIVB has a forward P/E of 22.35. We also note that EWBC has a PEG ratio of 1.28. 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 2.79.
Another notable valuation metric for EWBC is its P/B ratio of 1.96. 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 3.16.
These are just a few of the metrics contributing to EWBC's Value grade of B and SIVB's Value grade of C.
EWBC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EWBC is likely the superior value option right now.