Back to top

Image: Bigstock

CFG vs. FFIC: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Financial - Savings and Loan stocks are likely familiar with Citizens Financial Group (CFG - Free Report) and Flushing Financial (FFIC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Citizens Financial Group and Flushing Financial are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CFG has an improving earnings outlook. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CFG currently has a forward P/E ratio of 9.21, while FFIC has a forward P/E of 12.57. We also note that CFG has a PEG ratio of 0.55. 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. FFIC currently has a PEG ratio of 1.91.

Another notable valuation metric for CFG is its P/B ratio of 0.84. 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, FFIC has a P/B of 1.14.

These are just a few of the metrics contributing to CFG's Value grade of A and FFIC's Value grade of C.

CFG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CFG is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Flushing Financial Corporation (FFIC) - free report >>

Citizens Financial Group, Inc. (CFG) - free report >>

Published in