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

FFIC CFG

Investors with an interest in Financial - Savings and Loan stocks have likely encountered both Citizens Financial Group (CFG - Free Report) and Flushing Financial (FFIC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Citizens Financial Group and Flushing Financial are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CFG'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 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 11.62, while FFIC has a forward P/E of 14.06. We also note that CFG has a PEG ratio of 0.54. 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. FFIC currently has a PEG ratio of 1.35.

Another notable valuation metric for CFG is its P/B ratio of 0.99. 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, FFIC has a P/B of 1.41.

Based on these metrics and many more, CFG holds a Value grade of A, while FFIC has a Value grade of C.

CFG sticks out from FFIC in both our Zacks Rank and Style Scores models, so value investors will likely feel that CFG is the better option right now.

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