BNPQY vs. UOVEY: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Foreign stocks have likely encountered both BNP Paribas SA (BNPQY) and United Overseas Bank Ltd. (UOVEY). 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, BNP Paribas SA is sporting a Zacks Rank of #2 (Buy), while United Overseas Bank Ltd. has a Zacks Rank of #4 (Sell). This means that BNPQY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BNPQY currently has a forward P/E ratio of 7.26, while UOVEY has a forward P/E of 11.35. We also note that BNPQY has a PEG ratio of 0.67. 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. UOVEY currently has a PEG ratio of 0.73.
Another notable valuation metric for BNPQY is its P/B ratio of 0.48. 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 1.10.
These metrics, and several others, help BNPQY earn a Value grade of B, while UOVEY has been given a Value grade of C.
BNPQY stands above UOVEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BNPQY is the superior value option right now.
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BNP Paribas SA (BNPQY) : Free Stock Analysis Report
United Overseas Bank Ltd. (UOVEY) : Free Stock Analysis Report
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