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OPBK vs. BOKF: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Banks - Southwest sector have probably already heard of OP Bancorp (OPBK - Free Report) and BOK Financial (BOKF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

OP Bancorp has a Zacks Rank of #2 (Buy), while BOK Financial has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that OPBK likely has seen a stronger improvement to its earnings outlook than BOKF has recently. But this is just one factor that value investors are interested in.

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 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.

OPBK currently has a forward P/E ratio of 10.10, while BOKF has a forward P/E of 10.98. We also note that OPBK has a PEG ratio of 1.01. 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. BOKF currently has a PEG ratio of 1.69.

Another notable valuation metric for OPBK is its P/B ratio of 1.17. 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, BOKF has a P/B of 1.22.

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

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


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