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BDORY vs. UOVEY: Which Stock Is the Better Value Option?

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Investors interested in Banks - Foreign stocks are likely familiar with Banco Do Brasil SA (BDORY - Free Report) and United Overseas Bank Ltd. (UOVEY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Banco Do Brasil SA and United Overseas Bank Ltd. are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

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.

BDORY currently has a forward P/E ratio of 3.50, while UOVEY has a forward P/E of 8.48. We also note that BDORY has a PEG ratio of 0.20. 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. UOVEY currently has a PEG ratio of 0.50.

Another notable valuation metric for BDORY is its P/B ratio of 0.71. 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, UOVEY has a P/B of 1.20.

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

Both BDORY and UOVEY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BDORY is the superior value option right now.


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Banco Do Brasil SA (BDORY) - free report >>

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