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SUPV or UOVEY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Banks - Foreign stocks have likely encountered both Grupo Supervielle (SUPV - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Grupo Supervielle and United Overseas Bank Ltd. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that SUPV likely has seen a stronger improvement to its earnings outlook than UOVEY 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SUPV currently has a forward P/E ratio of 8.08, while UOVEY has a forward P/E of 10.36. We also note that SUPV has a PEG ratio of 2.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. UOVEY currently has a PEG ratio of 3.15.

Another notable valuation metric for SUPV is its P/B ratio of 1.09. 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 1.29.

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

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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