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PNC vs. JPM: Which Stock Is the Better Value Option?
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Investors with an interest in Financial - Investment Bank stocks have likely encountered both The PNC Financial Services Group, Inc (PNC - Free Report) and JPMorgan Chase & Co. (JPM - 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.
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.
Currently, both The PNC Financial Services Group, Inc and JPMorgan Chase & Co. are holding a Zacks Rank of #2 (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. 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.
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.
PNC currently has a forward P/E ratio of 10.94, while JPM has a forward P/E of 13.04. We also note that PNC has a PEG ratio of 0.84. 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. JPM currently has a PEG ratio of 1.17.
Another notable valuation metric for PNC is its P/B ratio of 1.3. 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, JPM has a P/B of 2.25.
These are just a few of the metrics contributing to PNC's Value grade of B and JPM's Value grade of C.
Both PNC and JPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PNC is the superior value option right now.
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PNC vs. JPM: Which Stock Is the Better Value Option?
Investors with an interest in Financial - Investment Bank stocks have likely encountered both The PNC Financial Services Group, Inc (PNC - Free Report) and JPMorgan Chase & Co. (JPM - 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.
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.
Currently, both The PNC Financial Services Group, Inc and JPMorgan Chase & Co. are holding a Zacks Rank of #2 (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. 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.
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.
PNC currently has a forward P/E ratio of 10.94, while JPM has a forward P/E of 13.04. We also note that PNC has a PEG ratio of 0.84. 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. JPM currently has a PEG ratio of 1.17.
Another notable valuation metric for PNC is its P/B ratio of 1.3. 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, JPM has a P/B of 2.25.
These are just a few of the metrics contributing to PNC's Value grade of B and JPM's Value grade of C.
Both PNC and JPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PNC is the superior value option right now.