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WF or CM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Banks - Foreign sector might want to consider either Woori Bank (WF - Free Report) or Canadian Imperial Bank (CM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Right now, both Woori Bank and Canadian Imperial Bank are sporting a Zacks Rank of #2 (Buy). 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. But this is just one factor that value investors are interested in.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WF currently has a forward P/E ratio of 6.43, while CM has a forward P/E of 12.53. We also note that WF has a PEG ratio of 1.01. 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. CM currently has a PEG ratio of 1.60.
Another notable valuation metric for WF is its P/B ratio of 0.55. 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, CM has a P/B of 1.76.
These are just a few of the metrics contributing to WF's Value grade of B and CM's Value grade of C.
Both WF and CM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WF is the superior value option right now.
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WF or CM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Banks - Foreign sector might want to consider either Woori Bank (WF - Free Report) or Canadian Imperial Bank (CM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Right now, both Woori Bank and Canadian Imperial Bank are sporting a Zacks Rank of #2 (Buy). 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. But this is just one factor that value investors are interested in.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
WF currently has a forward P/E ratio of 6.43, while CM has a forward P/E of 12.53. We also note that WF has a PEG ratio of 1.01. 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. CM currently has a PEG ratio of 1.60.
Another notable valuation metric for WF is its P/B ratio of 0.55. 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, CM has a P/B of 1.76.
These are just a few of the metrics contributing to WF's Value grade of B and CM's Value grade of C.
Both WF and CM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WF is the superior value option right now.