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.
UMBF vs. CBSH: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Banks - Midwest sector have probably already heard of UMB Financial (UMBF - Free Report) and Commerce Bancshares (CBSH - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
UMB Financial and Commerce Bancshares are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that UMBF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
UMBF currently has a forward P/E ratio of 9.56, while CBSH has a forward P/E of 12.17. We also note that UMBF has a PEG ratio of 0.82. 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. CBSH currently has a PEG ratio of 2.50.
Another notable valuation metric for UMBF is its P/B ratio of 1.18. 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, CBSH has a P/B of 1.73.
These are just a few of the metrics contributing to UMBF's Value grade of B and CBSH's Value grade of C.
UMBF sticks out from CBSH in both our Zacks Rank and Style Scores models, so value investors will likely feel that UMBF is the better 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
UMBF vs. CBSH: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Midwest sector have probably already heard of UMB Financial (UMBF - Free Report) and Commerce Bancshares (CBSH - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
UMB Financial and Commerce Bancshares are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that UMBF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
UMBF currently has a forward P/E ratio of 9.56, while CBSH has a forward P/E of 12.17. We also note that UMBF has a PEG ratio of 0.82. 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. CBSH currently has a PEG ratio of 2.50.
Another notable valuation metric for UMBF is its P/B ratio of 1.18. 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, CBSH has a P/B of 1.73.
These are just a few of the metrics contributing to UMBF's Value grade of B and CBSH's Value grade of C.
UMBF sticks out from CBSH in both our Zacks Rank and Style Scores models, so value investors will likely feel that UMBF is the better option right now.