Yahoo Finance UOVEY or HDB: Which Is the Better Value Stock Right Now?
Investors with an interest in Banks - Foreign stocks have likely encountered both United Overseas Bank Ltd. (UOVEY) and HDFC Bank (HDB). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
United Overseas Bank Ltd. has a Zacks Rank of #2 (Buy), while HDFC Bank has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that UOVEY likely has seen a stronger improvement to its earnings outlook than HDB has recently. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
UOVEY currently has a forward P/E ratio of 11.45, while HDB has a forward P/E of 23.93. We also note that UOVEY has a PEG ratio of 0.68. 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. HDB currently has a PEG ratio of 1.21.
Another notable valuation metric for UOVEY is its P/B ratio of 1.19. 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, HDB has a P/B of 3.91.
These are just a few of the metrics contributing to UOVEY's Value grade of B and HDB's Value grade of D.
UOVEY stands above HDB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UOVEY is the superior value option right now.
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United Overseas Bank Ltd. (UOVEY) : Free Stock Analysis Report
HDFC Bank Limited (HDB) : Free Stock Analysis Report
