UNCRY or UOVEY: Which Is the Better Value Stock Right Now?
Investors interested in Banks - Foreign stocks are likely familiar with UniCredit S.p.A. Unsponsored ADR (UNCRY) 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.
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 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.
UniCredit S.p.A. Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while United Overseas Bank Ltd. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that UNCRY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UNCRY currently has a forward P/E ratio of 6.37, while UOVEY has a forward P/E of 10.06. We also note that UNCRY has a PEG ratio of 0.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UOVEY currently has a PEG ratio of 0.68.
Another notable valuation metric for UNCRY is its P/B ratio of 0.34. 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 0.98.
These metrics, and several others, help UNCRY earn a Value grade of B, while UOVEY has been given a Value grade of C.
UNCRY has seen stronger estimate revision activity and sports more attractive valuation metrics than UOVEY, so it seems like value investors will conclude that UNCRY is the superior option right now.
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UniCredit S.p.A. Unsponsored ADR (UNCRY) : Free Stock Analysis Report
United Overseas Bank Ltd. (UOVEY) : Free Stock Analysis Report
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