雅虎香港財經 HBAN vs. CBSH: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Midwest sector have probably already heard of Huntington Bancshares (HBAN) and Commerce Bancshares (CBSH). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Huntington Bancshares and Commerce Bancshares are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HBAN currently has a forward P/E ratio of 12.25, while CBSH has a forward P/E of 15.74. We also note that HBAN has a PEG ratio of 2.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CBSH currently has a PEG ratio of 10.29.
Another notable valuation metric for HBAN is its P/B ratio of 1.24. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CBSH has a P/B of 2.55.
These are just a few of the metrics contributing to HBAN's Value grade of B and CBSH's Value grade of C.
Both HBAN and CBSH are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HBAN is the superior value option right now.
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Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report
Commerce Bancshares, Inc. (CBSH) : Free Stock Analysis Report
