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BSAC or IBN: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander-Chile (BSAC - Free Report) or ICICI Bank Limited (IBN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Banco Santander-Chile and ICICI Bank Limited are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BSAC likely has seen a stronger improvement to its earnings outlook than IBN has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

BSAC currently has a forward P/E ratio of 10.20, while IBN has a forward P/E of 17.43. We also note that BSAC has a PEG ratio of 0.38. 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. IBN currently has a PEG ratio of 2.23.

Another notable valuation metric for BSAC is its P/B ratio of 1.39. 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, IBN has a P/B of 2.84.

These metrics, and several others, help BSAC earn a Value grade of B, while IBN has been given a Value grade of C.

BSAC stands above IBN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BSAC is the superior value option right now.


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