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WSFS vs. LTXB: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Financial - Savings and Loan sector have probably already heard of WSFS Financial (WSFS - Free Report) and LegacyTexas Financial Group . 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, WSFS Financial has a Zacks Rank of #2 (Buy), while LegacyTexas Financial Group has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that WSFS likely has seen a stronger improvement to its earnings outlook than LTXB has recently. But this is just one piece of the puzzle for value investors.

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.

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.

WSFS currently has a forward P/E ratio of 11.23, while LTXB has a forward P/E of 11.35. We also note that WSFS has a PEG ratio of 0.94. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LTXB currently has a PEG ratio of 1.14.

Another notable valuation metric for WSFS is its P/B ratio of 1.62. 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, LTXB has a P/B of 1.78.

These are just a few of the metrics contributing to WSFS's Value grade of A and LTXB's Value grade of C.

WSFS 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 WSFS is likely the superior value option right now.


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