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PNFP or CHCO: Which Is the Better Value Stock Right Now?

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Investors with an interest in Banks - Southeast stocks have likely encountered both Pinnacle Financial (PNFP - Free Report) and City Holding (CHCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Pinnacle Financial and City Holding are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PNFP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

PNFP currently has a forward P/E ratio of 11.15, while CHCO has a forward P/E of 14.21. We also note that PNFP has a PEG ratio of 0.80. 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. CHCO currently has a PEG ratio of 1.78.

Another notable valuation metric for PNFP is its P/B ratio of 1.08. 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, CHCO has a P/B of 2.01.

These are just a few of the metrics contributing to PNFP's Value grade of B and CHCO's Value grade of C.

PNFP has seen stronger estimate revision activity and sports more attractive valuation metrics than CHCO, so it seems like value investors will conclude that PNFP is the superior option right now.


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Pinnacle Financial Partners, Inc. (PNFP) - free report >>

City Holding Company (CHCO) - free report >>

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