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UOVEY vs. DBSDY: Which Stock Is the Better Value Option?

Zacks Equity Research
·2-min read

Investors looking for stocks in the Banks - Foreign sector might want to consider either United Overseas Bank Ltd. (UOVEY) or DBS Group Holdings Ltd (DBSDY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both United Overseas Bank Ltd. and DBS Group Holdings Ltd have a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

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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.

UOVEY currently has a forward P/E ratio of 11.15, while DBSDY has a forward P/E of 11.92. We also note that UOVEY has a PEG ratio of 0.66. 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. DBSDY currently has a PEG ratio of 0.77.

Another notable valuation metric for UOVEY is its P/B ratio of 1.16. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DBSDY has a P/B of 1.51.

Based on these metrics and many more, UOVEY holds a Value grade of B, while DBSDY has a Value grade of D.

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


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United Overseas Bank Ltd. (UOVEY) : Free Stock Analysis Report
 
DBS Group Holdings Ltd (DBSDY) : Free Stock Analysis Report
 
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Zacks Investment Research