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BKU or NTRS: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Banks - Major Regional sector have probably already heard of BankUnited, Inc. (BKU - Free Report) and Northern Trust Corporation (NTRS - 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 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.
BankUnited, Inc. has a Zacks Rank of #2 (Buy), while Northern Trust Corporation has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BKU 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.
BKU currently has a forward P/E ratio of 12.63, while NTRS has a forward P/E of 14.43. We also note that BKU has a PEG ratio of 4.68. 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. NTRS currently has a PEG ratio of 12.66.
Another notable valuation metric for BKU is its P/B ratio of 1.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NTRS has a P/B of 1.82.
Based on these metrics and many more, BKU holds a Value grade of B, while NTRS has a Value grade of D.
BKU 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 BKU is likely the superior value option right now.
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BKU or NTRS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Banks - Major Regional sector have probably already heard of BankUnited, Inc. (BKU - Free Report) and Northern Trust Corporation (NTRS - 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 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.
BankUnited, Inc. has a Zacks Rank of #2 (Buy), while Northern Trust Corporation has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BKU 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.
BKU currently has a forward P/E ratio of 12.63, while NTRS has a forward P/E of 14.43. We also note that BKU has a PEG ratio of 4.68. 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. NTRS currently has a PEG ratio of 12.66.
Another notable valuation metric for BKU is its P/B ratio of 1.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NTRS has a P/B of 1.82.
Based on these metrics and many more, BKU holds a Value grade of B, while NTRS has a Value grade of D.
BKU 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 BKU is likely the superior value option right now.