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C vs. BAC: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Banks - Major Regional sector have probably already heard of Citigroup (C - Free Report) and Bank of America (BAC - 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.
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.
Currently, Citigroup has a Zacks Rank of #2 (Buy), while Bank of America has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that C is likely seeing its earnings outlook improve to a greater extent. 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 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.
C currently has a forward P/E ratio of 9.93, while BAC has a forward P/E of 12.90. We also note that C has a PEG ratio of 0.86. 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. BAC currently has a PEG ratio of 1.43.
Another notable valuation metric for C is its P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BAC has a P/B of 1.28.
Based on these metrics and many more, C holds a Value grade of B, while BAC has a Value grade of C.
C is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that C is likely the superior value option right now.
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C vs. BAC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Banks - Major Regional sector have probably already heard of Citigroup (C - Free Report) and Bank of America (BAC - 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.
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.
Currently, Citigroup has a Zacks Rank of #2 (Buy), while Bank of America has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that C is likely seeing its earnings outlook improve to a greater extent. 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 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.
C currently has a forward P/E ratio of 9.93, while BAC has a forward P/E of 12.90. We also note that C has a PEG ratio of 0.86. 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. BAC currently has a PEG ratio of 1.43.
Another notable valuation metric for C is its P/B ratio of 0.95. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BAC has a P/B of 1.28.
Based on these metrics and many more, C holds a Value grade of B, while BAC has a Value grade of C.
C is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that C is likely the superior value option right now.