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Investors looking for stocks in the Diversified Operations sector might want to consider either Sumitomo Corp. (SSUMY) or ITT (ITT). But which of these two stocks presents investors with the better value opportunity right now?

I'm sticking with a 'Buy' rating for Sumitomo Mitsui Financial Group following my assessment of its valuations and prospects. SMFG revealed its updated mid-teens ROE goal for the long run; I think this is achievable with cost-cutting moves and domestic rate hikes. The stock's current P/B of around 1.3x is undemanding, considering the significant discount to its U.S. peers.

Here is how Sumitomo Corp. (SSUMY) and Swire Pacific (SWRAY) have performed compared to their sector so far this year.

Investors with an interest in Diversified Operations stocks have likely encountered both Sumitomo Corp. (SSUMY) and ITT (ITT). But which of these two stocks presents investors with the better value opportunity right now?

Sumitomo Corp. (OTCMKTS:SSUMY - Get Free Report) saw a large drop in short interest during the month of March. As of March 13th, there was short interest totaling 63,468 shares, a drop of 38.6% from the February 26th total of 103,392 shares. Based on an average daily trading volume, of 228,982 shares, the days-to-cover ratio