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

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Investors with an interest in Banks - Foreign stocks have likely encountered both The Bank of East Asia Ltd. (BKEAY) and ICICI Bank Limited (IBN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Right now, The Bank of East Asia Ltd. is sporting a Zacks Rank of #2 (Buy), while ICICI Bank Limited has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BKEAY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

BKEAY currently has a forward P/E ratio of 7.43, while IBN has a forward P/E of 23.05. We also note that BKEAY has a PEG ratio of 0.36. 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 0.89.

Another notable valuation metric for BKEAY is its P/B ratio of 0.31. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, IBN has a P/B of 2.78.

Based on these metrics and many more, BKEAY holds a Value grade of B, while IBN has a Value grade of C.

BKEAY 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 BKEAY is likely the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Bank of East Asia Ltd. (BKEAY) : Free Stock Analysis Report
ICICI Bank Limited (IBN) : Free Stock Analysis Report
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Zacks Investment Research

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