Back to top

Image: Bigstock

FNB vs. TBK: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors with an interest in Banks - Southeast stocks have likely encountered both F.N.B. (FNB - 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.

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 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.

Right now, F.N.B. is sporting a Zacks Rank of #2 (Buy), while Triumph Bancorp has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FNB has an improving earnings outlook. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

FNB currently has a forward P/E ratio of 11.09, while TBK has a forward P/E of 15.21. We also note that FNB has a PEG ratio of 1.23. 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. TBK currently has a PEG ratio of 1.27.

Another notable valuation metric for FNB is its P/B ratio of 0.88. 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, TBK has a P/B of 1.52.

These metrics, and several others, help FNB earn a Value grade of A, while TBK has been given a Value grade of C.

FNB has seen stronger estimate revision activity and sports more attractive valuation metrics than TBK, so it seems like value investors will conclude that FNB is the superior option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


F.N.B. Corporation (FNB) - free report >>

Published in