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BSRR vs. CVBF: Which Stock Is the Better Value Option?

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Investors interested in Banks - West stocks are likely familiar with Sierra Bancorp (BSRR - Free Report) and CVB Financial (CVBF - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Sierra Bancorp has a Zacks Rank of #2 (Buy), while CVB Financial has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BSRR is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 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.

BSRR currently has a forward P/E ratio of 11.29, while CVBF has a forward P/E of 14.42. We also note that BSRR has a PEG ratio of 1.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVBF currently has a PEG ratio of 1.52.

Another notable valuation metric for BSRR is its P/B ratio of 1.37. 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, CVBF has a P/B of 1.58.

These metrics, and several others, help BSRR earn a Value grade of A, while CVBF has been given a Value grade of C.

BSRR 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 BSRR is likely the superior value option right now.


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