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

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Investors with an interest in Banks - Foreign stocks have likely encountered both Deutsche Bank (DB - Free Report) and United Overseas Bank Ltd. (UOVEY - 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.

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.

Both Deutsche Bank and United Overseas Bank 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 only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

DB currently has a forward P/E ratio of 7.38, while UOVEY has a forward P/E of 9.63. We also note that DB has a PEG ratio of 3.22. 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. UOVEY currently has a PEG ratio of 8.45.

Another notable valuation metric for DB is its P/B ratio of 0.41. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, UOVEY has a P/B of 1.19.

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

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


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Deutsche Bank Aktiengesellschaft (DB) - free report >>

United Overseas Bank Ltd. (UOVEY) - free report >>

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