U.S. markets open in 1 hour 56 minutes
  • S&P Futures

    4,549.50
    +12.00 (+0.26%)
     
  • Dow Futures

    34,794.00
    +228.00 (+0.66%)
     
  • Nasdaq Futures

    15,645.25
    -72.50 (-0.46%)
     
  • Russell 2000 Futures

    2,176.80
    +17.50 (+0.81%)
     
  • Crude Oil

    68.38
    +2.12 (+3.20%)
     
  • Gold

    1,779.80
    -4.10 (-0.23%)
     
  • Silver

    22.32
    -0.13 (-0.58%)
     
  • EUR/USD

    1.1303
    -0.0014 (-0.12%)
     
  • 10-Yr Bond

    1.3430
    0.0000 (0.00%)
     
  • Vix

    29.82
    +1.87 (+6.69%)
     
  • GBP/USD

    1.3272
    +0.0037 (+0.28%)
     
  • USD/JPY

    113.1400
    +0.3400 (+0.30%)
     
  • BTC-USD

    48,648.16
    -882.09 (-1.78%)
     
  • CMC Crypto 200

    1,245.26
    -196.50 (-13.63%)
     
  • FTSE 100

    7,191.24
    +68.92 (+0.97%)
     
  • Nikkei 225

    27,927.37
    -102.20 (-0.36%)
     

BSBR or BCH: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors with an interest in Banks - Foreign stocks have likely encountered both Banco Santander-Brazil (BSBR) and Banco De Chile (BCH). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Banco Santander-Brazil and Banco De Chile 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 only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

BSBR currently has a forward P/E ratio of 9.85, while BCH has a forward P/E of 14.41. We also note that BSBR has a PEG ratio of 1.20. 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. BCH currently has a PEG ratio of 2.77.

Another notable valuation metric for BSBR is its P/B ratio of 1.44. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BCH has a P/B of 2.29.

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

Both BSBR and BCH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BSBR is the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Banco Santander Brasil SA (BSBR) : Free Stock Analysis Report
 
Banco De Chile (BCH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.