We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
HOPE vs. COLB: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Banks - West sector might want to consider either Hope Bancorp (HOPE - Free Report) or Columbia Banking (COLB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Hope Bancorp has a Zacks Rank of #2 (Buy), while Columbia Banking has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HOPE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HOPE currently has a forward P/E ratio of 11.37, while COLB has a forward P/E of 16.72. We also note that HOPE has a PEG ratio of 1.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. COLB currently has a PEG ratio of 1.67.
Another notable valuation metric for HOPE is its P/B ratio of 1.19. 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, COLB has a P/B of 1.51.
These are just a few of the metrics contributing to HOPE's Value grade of A and COLB's Value grade of C.
HOPE sticks out from COLB in both our Zacks Rank and Style Scores models, so value investors will likely feel that HOPE is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HOPE vs. COLB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - West sector might want to consider either Hope Bancorp (HOPE - Free Report) or Columbia Banking (COLB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Hope Bancorp has a Zacks Rank of #2 (Buy), while Columbia Banking has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HOPE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HOPE currently has a forward P/E ratio of 11.37, while COLB has a forward P/E of 16.72. We also note that HOPE has a PEG ratio of 1.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. COLB currently has a PEG ratio of 1.67.
Another notable valuation metric for HOPE is its P/B ratio of 1.19. 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, COLB has a P/B of 1.51.
These are just a few of the metrics contributing to HOPE's Value grade of A and COLB's Value grade of C.
HOPE sticks out from COLB in both our Zacks Rank and Style Scores models, so value investors will likely feel that HOPE is the better option right now.