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HWC vs. TBK: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Banks - Southeast sector might want to consider either Hancock Holding (HWC - Free Report) or Triumph Bancorp . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Hancock Holding and Triumph Bancorp have a Zacks Rank of # 2 (Buy) right now. 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 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.

HWC currently has a forward P/E ratio of 12.79, while TBK has a forward P/E of 18.31. We also note that HWC has a PEG ratio of 1.60. 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. TBK currently has a PEG ratio of 1.66.

Another notable valuation metric for HWC is its P/B ratio of 1.46. 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, TBK has a P/B of 1.93.

Based on these metrics and many more, HWC holds a Value grade of B, while TBK has a Value grade of C.

Both HWC and TBK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HWC is the superior value option right now.


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