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ASB vs. UMBF: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Banks - Midwest sector have probably already heard of Associated Banc-Corp (ASB - Free Report) and UMB Financial (UMBF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Associated Banc-Corp and UMB Financial are sporting a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
ASB currently has a forward P/E ratio of 13.72, while UMBF has a forward P/E of 13.98. We also note that ASB has a PEG ratio of 1.71. 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. UMBF currently has a PEG ratio of 3.97.
Another notable valuation metric for ASB 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, UMBF has a P/B of 1.24.
Based on these metrics and many more, ASB holds a Value grade of B, while UMBF has a Value grade of F.
Both ASB and UMBF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASB is the superior value option right now.
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ASB vs. UMBF: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Midwest sector have probably already heard of Associated Banc-Corp (ASB - Free Report) and UMB Financial (UMBF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Associated Banc-Corp and UMB Financial are sporting a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
ASB currently has a forward P/E ratio of 13.72, while UMBF has a forward P/E of 13.98. We also note that ASB has a PEG ratio of 1.71. 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. UMBF currently has a PEG ratio of 3.97.
Another notable valuation metric for ASB 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, UMBF has a P/B of 1.24.
Based on these metrics and many more, ASB holds a Value grade of B, while UMBF has a Value grade of F.
Both ASB and UMBF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASB is the superior value option right now.