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USB or BNY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Banks - Major Regional sector have probably already heard of U.S. Bancorp (USB - Free Report) and BNY (BNY - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 U.S. Bancorp and BNY are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.
USB currently has a forward P/E ratio of 12.33, while BNY has a forward P/E of 17.32. We also note that USB has a PEG ratio of 1.05. 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. BNY currently has a PEG ratio of 1.14.
Another notable valuation metric for USB is its P/B ratio of 1.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BNY has a P/B of 2.69.
These are just a few of the metrics contributing to USB's Value grade of B and BNY's Value grade of F.
Both USB and BNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that USB is the superior value option right now.
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USB or BNY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Banks - Major Regional sector have probably already heard of U.S. Bancorp (USB - Free Report) and BNY (BNY - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 U.S. Bancorp and BNY are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.
USB currently has a forward P/E ratio of 12.33, while BNY has a forward P/E of 17.32. We also note that USB has a PEG ratio of 1.05. 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. BNY currently has a PEG ratio of 1.14.
Another notable valuation metric for USB is its P/B ratio of 1.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BNY has a P/B of 2.69.
These are just a few of the metrics contributing to USB's Value grade of B and BNY's Value grade of F.
Both USB and BNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that USB is the superior value option right now.