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

Core Viewpoint - Investors in the Banks - Foreign sector should consider The Bank of East Asia Ltd. (BKEAY) as a more attractive option compared to Banco Itau (ITUB) due to its stronger valuation metrics and better earnings estimate revisions [1][3][7] Valuation Metrics - BKEAY has a forward P/E ratio of 6.34, while ITUB has a forward P/E of 8.10, indicating BKEAY is undervalued relative to ITUB [5] - The PEG ratio for BKEAY is 0.82, compared to ITUB's PEG ratio of 0.99, suggesting BKEAY offers better value considering its expected earnings growth [5] - BKEAY's P/B ratio is 0.26, significantly lower than ITUB's P/B of 1.45, further highlighting BKEAY's undervaluation [6] Analyst Outlook - BKEAY holds a Zacks Rank of 2 (Buy), indicating a positive analyst outlook, while ITUB has a Zacks Rank of 4 (Sell), reflecting a less favorable view [3] - The stronger estimate revision activity for BKEAY suggests a more optimistic future performance compared to ITUB [7]