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CBFV vs. ACBI: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Banks - Northeast sector have probably already heard of CB Financial Services (CBFV - Free Report) and Atlantic Capital Bancshares . 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

CB Financial Services has a Zacks Rank of #2 (Buy), while Atlantic Capital Bancshares has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CBFV is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 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.

CBFV currently has a forward P/E ratio of 11.24, while ACBI has a forward P/E of 15.69. We also note that CBFV has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACBI currently has a PEG ratio of 1.49.

Another notable valuation metric for CBFV is its P/B ratio of 0.92. 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, ACBI has a P/B of 1.35.

Based on these metrics and many more, CBFV holds a Value grade of B, while ACBI has a Value grade of C.

CBFV sticks out from ACBI in both our Zacks Rank and Style Scores models, so value investors will likely feel that CBFV is the better option right now.


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