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HBAN vs. CBSH: Which Stock Is the Better Value Option?
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Investors with an interest in Banks - Midwest stocks have likely encountered both Huntington Bancshares (HBAN - Free Report) and Commerce Bancshares (CBSH - 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 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.
Currently, Huntington Bancshares has a Zacks Rank of #2 (Buy), while Commerce Bancshares has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that HBAN likely has seen a stronger improvement to its earnings outlook than CBSH has recently. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HBAN currently has a forward P/E ratio of 10.33, while CBSH has a forward P/E of 12.64. We also note that HBAN has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBSH currently has a PEG ratio of 4.84.
Another notable valuation metric for HBAN is its P/B ratio of 1.15. 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, CBSH has a P/B of 1.89.
Based on these metrics and many more, HBAN holds a Value grade of B, while CBSH has a Value grade of D.
HBAN stands above CBSH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HBAN is the superior value option right now.
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HBAN vs. CBSH: Which Stock Is the Better Value Option?
Investors with an interest in Banks - Midwest stocks have likely encountered both Huntington Bancshares (HBAN - Free Report) and Commerce Bancshares (CBSH - 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 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.
Currently, Huntington Bancshares has a Zacks Rank of #2 (Buy), while Commerce Bancshares has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that HBAN likely has seen a stronger improvement to its earnings outlook than CBSH has recently. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HBAN currently has a forward P/E ratio of 10.33, while CBSH has a forward P/E of 12.64. We also note that HBAN has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBSH currently has a PEG ratio of 4.84.
Another notable valuation metric for HBAN is its P/B ratio of 1.15. 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, CBSH has a P/B of 1.89.
Based on these metrics and many more, HBAN holds a Value grade of B, while CBSH has a Value grade of D.
HBAN stands above CBSH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HBAN is the superior value option right now.