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HWC vs. SNV: Which Stock Is the Better Value Option?
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Investors interested in Banks - Southeast stocks are likely familiar with Hancock Whitney (HWC - Free Report) and Synovus Financial (SNV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Hancock Whitney and Synovus Financial are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
HWC currently has a forward P/E ratio of 9.98, while SNV has a forward P/E of 11.50. We also note that HWC has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNV currently has a PEG ratio of 1.44.
Another notable valuation metric for HWC is its P/B ratio of 0.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SNV has a P/B of 1.32.
Based on these metrics and many more, HWC holds a Value grade of B, while SNV has a Value grade of D.
Both HWC and SNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HWC is the superior value option right now.
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HWC vs. SNV: Which Stock Is the Better Value Option?
Investors interested in Banks - Southeast stocks are likely familiar with Hancock Whitney (HWC - Free Report) and Synovus Financial (SNV - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Hancock Whitney and Synovus Financial are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
HWC currently has a forward P/E ratio of 9.98, while SNV has a forward P/E of 11.50. We also note that HWC has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNV currently has a PEG ratio of 1.44.
Another notable valuation metric for HWC is its P/B ratio of 0.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SNV has a P/B of 1.32.
Based on these metrics and many more, HWC holds a Value grade of B, while SNV has a Value grade of D.
Both HWC and SNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HWC is the superior value option right now.