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

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Investors interested in stocks from the Banks - Foreign sector have probably already heard of Grupo Supervielle (SUPV - Free Report) and United Overseas Bank Ltd. (UOVEY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Grupo Supervielle has a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SUPV has an improving earnings outlook. However, value investors will care about much more than just this.

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.

SUPV currently has a forward P/E ratio of 8.64, while UOVEY has a forward P/E of 10.20. We also note that SUPV has a PEG ratio of 2.58. 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. UOVEY currently has a PEG ratio of 3.10.

Another notable valuation metric for SUPV is its P/B ratio of 1.16. 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 1.27.

Based on these metrics and many more, SUPV holds a Value grade of A, while UOVEY has a Value grade of D.

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


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

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