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

Core Insights - The article compares The Bank of East Asia Ltd. (BKEAY) and Banco Itau (ITUB) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Earnings Outlook - BKEAY has a Zacks Rank of 2 (Buy), while ITUB has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for BKEAY [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that BKEAY is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - BKEAY has a forward P/E ratio of 6.63, compared to ITUB's forward P/E of 7.12, indicating that BKEAY may be undervalued relative to ITUB [5] - The PEG ratio for BKEAY is 0.85, while ITUB's PEG ratio is 0.88, suggesting that BKEAY has a better valuation considering its expected earnings growth [5] - BKEAY's P/B ratio is 0.26, significantly lower than ITUB's P/B of 1.35, further indicating that BKEAY may be undervalued [6] Group 3: Overall Value Assessment - Based on various valuation metrics, BKEAY holds a Value grade of A, while ITUB has a Value grade of D, reinforcing the conclusion that BKEAY is the superior value option [7]