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PUB vs. BOH: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Banks - West stocks have likely encountered both Peoples Utah Bancorp and Bank of Hawaii (BOH - Free Report) . 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Peoples Utah Bancorp is sporting a Zacks Rank of #2 (Buy), while Bank of Hawaii has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PUB likely has seen a stronger improvement to its earnings outlook than BOH has recently. 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.

PUB currently has a forward P/E ratio of 12.13, while BOH has a forward P/E of 15.35. We also note that PUB has a PEG ratio of 1.52. 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. BOH currently has a PEG ratio of 2.05.

Another notable valuation metric for PUB is its P/B ratio of 1.69. 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, BOH has a P/B of 2.71.

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

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


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