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BOCH vs. CVBF: Which Stock Should Value Investors Buy Now?

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Investors interested in Banks - West stocks are likely familiar with Bank of Commerce and CVB Financial (CVBF - 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Bank of Commerce has a Zacks Rank of #1 (Strong Buy), while CVB Financial has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BOCH likely has seen a stronger improvement to its earnings outlook than CVBF has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

BOCH currently has a forward P/E ratio of 13.30, while CVBF has a forward P/E of 18.27. We also note that BOCH has a PEG ratio of 1.90. 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. CVBF currently has a PEG ratio of 1.92.

Another notable valuation metric for BOCH is its P/B ratio of 1.49. 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, CVBF has a P/B of 1.79.

These are just a few of the metrics contributing to BOCH's Value grade of B and CVBF's Value grade of D.

BOCH stands above CVBF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BOCH is the superior value option right now.


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