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BDORY or UOVEY: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Do Brasil SA (BDORY) or United Overseas Bank Ltd. (UOVEY). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Banco Do Brasil SA has a Zacks Rank of #1 (Strong Buy), while United Overseas Bank Ltd. has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BDORY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

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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.

BDORY currently has a forward P/E ratio of 3.43, while UOVEY has a forward P/E of 8.97. We also note that BDORY has a PEG ratio of 0.19. 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 0.53.

Another notable valuation metric for BDORY is its P/B ratio of 0.70. 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 1.27.

Based on these metrics and many more, BDORY holds a Value grade of A, while UOVEY has a Value grade of C.

BDORY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BDORY is likely the superior value option right now.

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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report

United Overseas Bank Ltd. (UOVEY) : Free Stock Analysis Report

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Zacks Investment Research