Back to top

Image: Bigstock

BNPQY vs. UOVEY: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Banks - Foreign stocks are likely familiar with BNP Paribas SA (BNPQY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

BNP Paribas SA and United Overseas Bank Ltd. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BNPQY has an improving earnings outlook. But this is just one piece of the puzzle 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.

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.

BNPQY currently has a forward P/E ratio of 6.78, while UOVEY has a forward P/E of 8.17. We also note that BNPQY has a PEG ratio of 0.39. 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 0.80.

Another notable valuation metric for BNPQY is its P/B ratio of 0.62. 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 1.12.

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

BNPQY stands above UOVEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BNPQY is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BNP Paribas SA (BNPQY) - free report >>

United Overseas Bank Ltd. (UOVEY) - free report >>

Published in