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Peapack-Gladstone Financial Corporation (PGC) - free report >>
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Peapack-Gladstone Financial Corporation (PGC) - free report >>
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BY vs. PGC: Which Stock Is the Better Value Option?
Investors interested in Banks - Northeast stocks are likely familiar with Byline Bancorp (BY - Free Report) and Peapack-Gladstone (PGC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Byline Bancorp and Peapack-Gladstone have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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.
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.
BY currently has a forward P/E ratio of 13.42, while PGC has a forward P/E of 13.61. We also note that BY has a PEG ratio of 1.34. 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. PGC currently has a PEG ratio of 11.34.
Another notable valuation metric for BY is its P/B ratio of 0.79. 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, PGC has a P/B of 0.91.
Based on these metrics and many more, BY holds a Value grade of B, while PGC has a Value grade of D.
Both BY and PGC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BY is the superior value option right now.