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SIVB vs. GBCI: Which Stock Is the Better Value Option?

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Investors interested in Banks - West stocks are likely familiar with SVB Financial and Glacier Bancorp (GBCI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

SVB Financial has a Zacks Rank of #2 (Buy), while Glacier Bancorp has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SIVB has an improving earnings outlook. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SIVB currently has a forward P/E ratio of 11.02, while GBCI has a forward P/E of 17.71. We also note that SIVB has a PEG ratio of 1.10. 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. GBCI currently has a PEG ratio of 1.77.

Another notable valuation metric for SIVB is its P/B ratio of 2.37. 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, GBCI has a P/B of 2.45.

Based on these metrics and many more, SIVB holds a Value grade of B, while GBCI has a Value grade of D.

SIVB has seen stronger estimate revision activity and sports more attractive valuation metrics than GBCI, so it seems like value investors will conclude that SIVB is the superior option right now.


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