Canada markets close in 3 hours 46 minutes
  • S&P/TSX

    20,659.04
    -65.96 (-0.32%)
     
  • S&P 500

    4,120.48
    -43.52 (-1.05%)
     
  • DOW

    33,964.84
    -191.85 (-0.56%)
     
  • CAD/USD

    0.7447
    -0.0022 (-0.29%)
     
  • CRUDE OIL

    77.70
    +0.56 (+0.73%)
     
  • BTC-CAD

    30,811.57
    -246.22 (-0.79%)
     
  • CMC Crypto 200

    528.48
    -8.41 (-1.57%)
     
  • GOLD FUTURES

    1,887.90
    +3.10 (+0.16%)
     
  • RUSSELL 2000

    1,947.71
    -24.90 (-1.26%)
     
  • 10-Yr Bond

    3.6770
    +0.0030 (+0.08%)
     
  • NASDAQ

    11,930.36
    -183.43 (-1.51%)
     
  • VOLATILITY

    19.78
    +1.12 (+6.00%)
     
  • FTSE

    7,885.17
    +20.46 (+0.26%)
     
  • NIKKEI 225

    27,606.46
    -79.01 (-0.29%)
     
  • CAD/EUR

    0.6933
    -0.0024 (-0.34%)
     

BKEAY vs. CM: Which Stock Is the Better Value Option?

Investors looking for stocks in the Banks - Foreign sector might want to consider either The Bank of East Asia Ltd. (BKEAY) or Canadian Imperial Bank (CM). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

The Bank of East Asia Ltd. has a Zacks Rank of #2 (Buy), while Canadian Imperial Bank has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BKEAY likely has seen a stronger improvement to its earnings outlook than CM has recently. However, value investors will care about much more than just this.

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.

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.

BKEAY currently has a forward P/E ratio of 6.44, while CM has a forward P/E of 9.46. We also note that BKEAY has a PEG ratio of 0.41. 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. CM currently has a PEG ratio of 2.01.

Another notable valuation metric for BKEAY is its P/B ratio of 0.28. 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, CM has a P/B of 1.50.

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

BKEAY sticks out from CM in both our Zacks Rank and Style Scores models, so value investors will likely feel that BKEAY is the better 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
 
Canadian Imperial Bank of Commerce (CM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research