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EWBC vs. BOH: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Banks - West sector might want to consider either East West Bancorp (EWBC - Free Report) or Bank of Hawaii (BOH - Free Report) . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both East West Bancorp and Bank of Hawaii 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 factor that value investors are interested in.
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.
EWBC currently has a forward P/E ratio of 9.79, while BOH has a forward P/E of 14.19. We also note that EWBC has a PEG ratio of 0.98. 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. BOH currently has a PEG ratio of 1.77.
Another notable valuation metric for EWBC is its P/B ratio of 1.93. 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, BOH has a P/B of 2.75.
These are just a few of the metrics contributing to EWBC's Value grade of B and BOH's Value grade of C.
Both EWBC and BOH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EWBC is the superior value option right now.
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EWBC vs. BOH: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Banks - West sector might want to consider either East West Bancorp (EWBC - Free Report) or Bank of Hawaii (BOH - Free Report) . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both East West Bancorp and Bank of Hawaii 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 factor that value investors are interested in.
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.
EWBC currently has a forward P/E ratio of 9.79, while BOH has a forward P/E of 14.19. We also note that EWBC has a PEG ratio of 0.98. 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. BOH currently has a PEG ratio of 1.77.
Another notable valuation metric for EWBC is its P/B ratio of 1.93. 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, BOH has a P/B of 2.75.
These are just a few of the metrics contributing to EWBC's Value grade of B and BOH's Value grade of C.
Both EWBC and BOH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EWBC is the superior value option right now.