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PACW vs. COLB: Which Stock Is the Better Value Option?
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Investors with an interest in Banks - West stocks have likely encountered both PacWest Bancorp and Columbia Banking (COLB - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
PacWest Bancorp and Columbia Banking are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PACW likely has seen a stronger improvement to its earnings outlook than COLB has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PACW currently has a forward P/E ratio of 13.55, while COLB has a forward P/E of 16.39. We also note that PACW has a PEG ratio of 1.35. 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. COLB currently has a PEG ratio of 1.64.
Another notable valuation metric for PACW is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, COLB has a P/B of 1.59.
These are just a few of the metrics contributing to PACW's Value grade of B and COLB's Value grade of C.
PACW stands above COLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PACW is the superior value option right now.
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PACW vs. COLB: Which Stock Is the Better Value Option?
Investors with an interest in Banks - West stocks have likely encountered both PacWest Bancorp and Columbia Banking (COLB - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
PacWest Bancorp and Columbia Banking are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PACW likely has seen a stronger improvement to its earnings outlook than COLB has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PACW currently has a forward P/E ratio of 13.55, while COLB has a forward P/E of 16.39. We also note that PACW has a PEG ratio of 1.35. 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. COLB currently has a PEG ratio of 1.64.
Another notable valuation metric for PACW is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, COLB has a P/B of 1.59.
These are just a few of the metrics contributing to PACW's Value grade of B and COLB's Value grade of C.
PACW stands above COLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PACW is the superior value option right now.