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FBP vs. TBK: Which Stock Is the Better Value Option?

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Investors interested in Banks - Southeast stocks are likely familiar with First Bancorp (FBP - Free Report) and Triumph Bancorp . 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

First Bancorp and Triumph Bancorp are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FBP has an improving earnings outlook. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

FBP currently has a forward P/E ratio of 14.37, while TBK has a forward P/E of 14.89. We also note that FBP has a PEG ratio of 0.76. 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. TBK currently has a PEG ratio of 1.24.

Another notable valuation metric for FBP is its P/B ratio of 1.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TBK has a P/B of 1.30.

These are just a few of the metrics contributing to FBP's Value grade of B and TBK's Value grade of D.

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


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