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CIVB vs. LKFN: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Banks - Midwest sector might want to consider either Civista Bancshares (CIVB - Free Report) or Lakeland Financial (LKFN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Civista Bancshares has a Zacks Rank of #1 (Strong Buy), while Lakeland Financial has a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CIVB has an improving earnings outlook. 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.

CIVB currently has a forward P/E ratio of 10.34, while LKFN has a forward P/E of 13.75. We also note that CIVB has a PEG ratio of 1.29. 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. LKFN currently has a PEG ratio of 1.37.

Another notable valuation metric for CIVB is its P/B ratio of 1.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, LKFN has a P/B of 2.20.

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

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


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Lakeland Financial Corporation (LKFN) - free report >>

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