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OSVBF vs. BSAC: Which Stock Is the Better Value Option?

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Investors interested in Banks - Foreign stocks are likely familiar with OneSavings Bank PLC and Banco Santander-Chile (BSAC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

OneSavings Bank PLC has a Zacks Rank of #2 (Buy), while Banco Santander-Chile has a Zacks Rank of #3 (Hold) right now. This means that OSVBF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

OSVBF currently has a forward P/E ratio of 7.75, while BSAC has a forward P/E of 14.95. We also note that OSVBF has a PEG ratio of 1.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BSAC currently has a PEG ratio of 1.20.

Another notable valuation metric for OSVBF is its P/B ratio of 1.75. 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, BSAC has a P/B of 2.64.

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

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


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