Investors looking for stocks in the Banks - Southeast sector might want to consider either State Bank Financial or Triumph Bancorp . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, State Bank Financial is sporting a Zacks Rank of #2 (Buy), while Triumph Bancorp has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STBZ likely has seen a stronger improvement to its earnings outlook than TBK has recently. 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.
STBZ currently has a forward P/E ratio of 11.07, while TBK has a forward P/E of 16.51. We also note that STBZ has a PEG ratio of 0.82. 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. TBK currently has a PEG ratio of 1.65.
Another notable valuation metric for STBZ is its P/B ratio of 1.43. 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, TBK has a P/B of 1.59.
These are just a few of the metrics contributing to STBZ's Value grade of B and TBK's Value grade of C.
STBZ sticks out from TBK in both our Zacks Rank and Style Scores models, so value investors will likely feel that STBZ is the better option right now.
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STBZ vs. TBK: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Southeast sector might want to consider either State Bank Financial or Triumph Bancorp . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, State Bank Financial is sporting a Zacks Rank of #2 (Buy), while Triumph Bancorp has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STBZ likely has seen a stronger improvement to its earnings outlook than TBK has recently. 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.
STBZ currently has a forward P/E ratio of 11.07, while TBK has a forward P/E of 16.51. We also note that STBZ has a PEG ratio of 0.82. 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. TBK currently has a PEG ratio of 1.65.
Another notable valuation metric for STBZ is its P/B ratio of 1.43. 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, TBK has a P/B of 1.59.
These are just a few of the metrics contributing to STBZ's Value grade of B and TBK's Value grade of C.
STBZ sticks out from TBK in both our Zacks Rank and Style Scores models, so value investors will likely feel that STBZ is the better option right now.