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

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Investors with an interest in Banks - Foreign stocks have likely encountered both Intesa Sanpaolo SpA (ISNPY - Free Report) and United Overseas Bank Ltd. (UOVEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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.

Right now, Intesa Sanpaolo SpA is sporting a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ISNPY is likely seeing its earnings outlook improve to a greater extent. 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 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.

ISNPY currently has a forward P/E ratio of 6.57, while UOVEY has a forward P/E of 8.26. We also note that ISNPY has a PEG ratio of 0.30. 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. UOVEY currently has a PEG ratio of 0.95.

Another notable valuation metric for ISNPY is its P/B ratio of 0.69. 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, UOVEY has a P/B of 1.13.

Based on these metrics and many more, ISNPY holds a Value grade of B, while UOVEY has a Value grade of C.

ISNPY sticks out from UOVEY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ISNPY is the better option right now.


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

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