We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EWBC or SIVB: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Banks - West sector have probably already heard of East West Bancorp (EWBC - Free Report) and SVB Financial . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
East West Bancorp has a Zacks Rank of #2 (Buy), while SVB Financial has a Zacks Rank of #3 (Hold) right now. This means that EWBC'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.
EWBC currently has a forward P/E ratio of 11.66, while SIVB has a forward P/E of 16.43. We also note that EWBC has a PEG ratio of 1.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SIVB currently has a PEG ratio of 2.05.
Another notable valuation metric for EWBC is its P/B ratio of 1.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SIVB has a P/B of 2.28.
Based on these metrics and many more, EWBC holds a Value grade of B, while SIVB has a Value grade of C.
EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than SIVB, so it seems like value investors will conclude that EWBC is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
EWBC or SIVB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Banks - West sector have probably already heard of East West Bancorp (EWBC - Free Report) and SVB Financial . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
East West Bancorp has a Zacks Rank of #2 (Buy), while SVB Financial has a Zacks Rank of #3 (Hold) right now. This means that EWBC'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.
EWBC currently has a forward P/E ratio of 11.66, while SIVB has a forward P/E of 16.43. We also note that EWBC has a PEG ratio of 1.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SIVB currently has a PEG ratio of 2.05.
Another notable valuation metric for EWBC is its P/B ratio of 1.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SIVB has a P/B of 2.28.
Based on these metrics and many more, EWBC holds a Value grade of B, while SIVB has a Value grade of C.
EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than SIVB, so it seems like value investors will conclude that EWBC is the superior option right now.