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ZION vs. BOH: Which Stock Should Value Investors Buy Now?

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Investors interested in Banks - West stocks are likely familiar with Zions (ZION - Free Report) and Bank of Hawaii (BOH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Zions is sporting a Zacks Rank of #2 (Buy), while Bank of Hawaii has a Zacks Rank of #3 (Hold). This means that ZION's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ZION currently has a forward P/E ratio of 11.74, while BOH has a forward P/E of 14.38. We also note that ZION has a PEG ratio of 1.27. 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. BOH currently has a PEG ratio of 1.69.

Another notable valuation metric for ZION is its P/B ratio of 1.31. 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, BOH has a P/B of 2.53.

These metrics, and several others, help ZION earn a Value grade of B, while BOH has been given a Value grade of C.

ZION stands above BOH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZION is the superior value option right now.


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Zions Bancorporation, N.A. (ZION) - free report >>

Bank of Hawaii Corporation (BOH) - free report >>

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