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

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Investors interested in Banks - Foreign stocks are likely familiar with Intesa Sanpaolo SpA (ISNPY - Free Report) and United Overseas Bank Ltd. (UOVEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Intesa Sanpaolo SpA and United Overseas Bank Ltd. are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ISNPY currently has a forward P/E ratio of 8.01, while UOVEY has a forward P/E of 9.46. We also note that ISNPY has a PEG ratio of 0.90. 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. UOVEY currently has a PEG ratio of 8.30.

Another notable valuation metric for ISNPY is its P/B ratio of 1.02. 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, UOVEY has a P/B of 1.18.

These are just a few of the metrics contributing to ISNPY's Value grade of B and UOVEY's Value grade of D.

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


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

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