We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TCBI vs. CFR: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Banks - Southwest stocks have likely encountered both Texas Capital (TCBI - Free Report) and Cullen/Frost Bankers (CFR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Texas Capital has a Zacks Rank of #1 (Strong Buy), while Cullen/Frost Bankers has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TCBI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
TCBI currently has a forward P/E ratio of 12.02, while CFR has a forward P/E of 12.78. We also note that TCBI has a PEG ratio of 0.44. 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. CFR currently has a PEG ratio of 4.79.
Another notable valuation metric for TCBI is its P/B ratio of 1.25. 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, CFR has a P/B of 1.88.
These metrics, and several others, help TCBI earn a Value grade of B, while CFR has been given a Value grade of F.
TCBI has seen stronger estimate revision activity and sports more attractive valuation metrics than CFR, so it seems like value investors will conclude that TCBI is the superior option right now.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
TCBI vs. CFR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Banks - Southwest stocks have likely encountered both Texas Capital (TCBI - Free Report) and Cullen/Frost Bankers (CFR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Texas Capital has a Zacks Rank of #1 (Strong Buy), while Cullen/Frost Bankers has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TCBI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
TCBI currently has a forward P/E ratio of 12.02, while CFR has a forward P/E of 12.78. We also note that TCBI has a PEG ratio of 0.44. 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. CFR currently has a PEG ratio of 4.79.
Another notable valuation metric for TCBI is its P/B ratio of 1.25. 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, CFR has a P/B of 1.88.
These metrics, and several others, help TCBI earn a Value grade of B, while CFR has been given a Value grade of F.
TCBI has seen stronger estimate revision activity and sports more attractive valuation metrics than CFR, so it seems like value investors will conclude that TCBI is the superior option right now.