DBS STOCK, OCBC STOCK, UOB STOCK: WHICH IS MOST ATTRACTIVE NOW?

Dear readers, it was recently announced that the dividends cap on the local banking stocks will be lifted. The announcement sent the share prices of DBS stock, OCBC stock and UOB stock higher.

Let us take a look at just which of the three banking counters is more attractive.

As at 23 Jul 21 (last week), yes I am using last week’s data before the recent announcement of the lifting of the dividends cap so as to get a more balanced picture, the Price-to-Book (PB) ratios of the three banking stocks are below:

DBS stock: 1.38

OCBC stock: 1.07

UOB stock: 1.04

From the above, we can see that UOB stock is the most undervalued of the three banking stocks.

Next, we take a look at the Price-to-Earnings (PE) ratios of the three banking stocks below (as at 23 Jul 21):

DBS stock: 13.8

OCBC stock: 12.3

UOB stock: 14.6

On the PE front, OCBC stock is the seems to be the cheapest among the three banking stocks.

We will also take a look at the 12-month Dividend Yields of the three banking stocks below (as at 23 Jul 21):

DBS stock: 2.4%

OCBC stock: 2.6%

UOB stock: 3%

UOB stock pays the most dividends in term of dividend yields among the three banking stocks.

Finally, we take a look at how much year-to-date capital appreciation each of the three banks have undergone:

DBS stock: 30.87%

OCBC stock: 12.57%

UOB stock: 26.69%

It seems that OCBC stock has not appreciated as much as its two other peers year-to-date.

From all the above, my pick of the most attractive banking stock is…….. OCBC stock.

OCBC stock is cheapest in terms of PE , and also close to being the most undervalued and there seems to be more headway for capital appreciation for the stock.

BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!