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PNFP vs. FBNC: Which Stock Is the Better Value Option?

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Investors interested in Banks - Southeast stocks are likely familiar with Pinnacle Financial (PNFP - Free Report) and First Bancorp (FBNC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Pinnacle Financial has a Zacks Rank of #2 (Buy), while First Bancorp has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that PNFP likely has seen a stronger improvement to its earnings outlook than FBNC has recently. But this is just one piece of the puzzle for value investors.

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.

PNFP currently has a forward P/E ratio of 11.98, while FBNC has a forward P/E of 12.73. We also note that PNFP has a PEG ratio of 0.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FBNC currently has a PEG ratio of 3.86.

Another notable valuation metric for PNFP is its P/B ratio of 1.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FBNC has a P/B of 1.44.

These metrics, and several others, help PNFP earn a Value grade of B, while FBNC has been given a Value grade of C.

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


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First Bancorp (FBNC) - free report >>

Pinnacle Financial Partners, Inc. (PNFP) - free report >>

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