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BWB vs. CBU: Which Stock Is the Better Value Option?

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Investors with an interest in Banks - Northeast stocks have likely encountered both Bridgewater Bancshares, Inc. (BWB - Free Report) and Community Bank System (CBU - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Bridgewater Bancshares, Inc. has a Zacks Rank of #2 (Buy), while Community Bank System has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BWB likely has seen a stronger improvement to its earnings outlook than CBU has recently. 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.

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.

BWB currently has a forward P/E ratio of 10.95, while CBU has a forward P/E of 18.70. We also note that BWB has a PEG ratio of 0.73. 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. CBU currently has a PEG ratio of 2.34.

Another notable valuation metric for BWB is its P/B ratio of 1.42. 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, CBU has a P/B of 1.73.

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

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


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Community Bank System, Inc. (CBU) - free report >>

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