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CIB vs. ITUB: 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 Bancolombia (CIB - Free Report) and Banco Itau (ITUB - 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 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, both Bancolombia and Banco Itau are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
CIB currently has a forward P/E ratio of 6.81, while ITUB has a forward P/E of 8.60. We also note that CIB has a PEG ratio of 0.96. 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. ITUB currently has a PEG ratio of 0.97.
Another notable valuation metric for CIB is its P/B ratio of 1.26. 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, ITUB has a P/B of 1.88.
These metrics, and several others, help CIB earn a Value grade of B, while ITUB has been given a Value grade of D.
Both CIB and ITUB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CIB is the superior value option right now.
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CIB vs. ITUB: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Foreign sector have probably already heard of Bancolombia (CIB - Free Report) and Banco Itau (ITUB - 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 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, both Bancolombia and Banco Itau are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
CIB currently has a forward P/E ratio of 6.81, while ITUB has a forward P/E of 8.60. We also note that CIB has a PEG ratio of 0.96. 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. ITUB currently has a PEG ratio of 0.97.
Another notable valuation metric for CIB is its P/B ratio of 1.26. 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, ITUB has a P/B of 1.88.
These metrics, and several others, help CIB earn a Value grade of B, while ITUB has been given a Value grade of D.
Both CIB and ITUB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CIB is the superior value option right now.