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BOCH vs. PUB: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Banks - West sector might want to consider either Bank of Commerce or Peoples Utah Bancorp . 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.

Right now, Bank of Commerce is sporting a Zacks Rank of #1 (Strong Buy), while Peoples Utah Bancorp has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BOCH has an improving earnings 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BOCH currently has a forward P/E ratio of 13.16, while PUB has a forward P/E of 15.41. We also note that BOCH has a PEG ratio of 1.88. 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. PUB currently has a PEG ratio of 1.93.

Another notable valuation metric for BOCH is its P/B ratio of 1.47. 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, PUB has a P/B of 2.19.

These metrics, and several others, help BOCH earn a Value grade of B, while PUB has been given a Value grade of C.

BOCH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BOCH is likely the superior value option right now.

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