Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Banks - West stocks have likely encountered both Sierra Bancorp (BSRR - Free Report) 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.

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, Sierra Bancorp has a Zacks Rank of #2 (Buy), while CVB Financial has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BSRR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

BSRR currently has a forward P/E ratio of 11.64, while CVBF has a forward P/E of 14.32. We also note that BSRR has a PEG ratio of 1.46. 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 1.51.

Another notable valuation metric for BSRR is its P/B ratio of 1.41. 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, CVBF has a P/B of 1.57.

These metrics, and several others, help BSRR earn a Value grade of A, while CVBF has been given a Value grade of C.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CVB Financial Corporation (CVBF) - free report >>

Sierra Bancorp (BSRR) - free report >>

Published in