Investors interested in Banks - West stocks are likely familiar with Bank of Commerce (BOCH) and Glacier Bancorp (GBCI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Right now, Bank of Commerce is sporting a Zacks Rank of #2 (Buy), while Glacier Bancorp 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 BOCH 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
BOCH currently has a forward P/E ratio of 11.60, while GBCI has a forward P/E of 17.87. We also note that BOCH has a PEG ratio of 1.66. 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. GBCI currently has a PEG ratio of 1.79.
Another notable valuation metric for BOCH is its P/B ratio of 1.30. 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, GBCI has a P/B of 2.21.
These metrics, and several others, help BOCH earn a Value grade of B, while GBCI has been given a Value grade of D.
BOCH has seen stronger estimate revision activity and sports more attractive valuation metrics than GBCI, so it seems like value investors will conclude that BOCH is the superior option right now.
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Bank of Commerce Holdings (CA) (BOCH) : Free Stock Analysis Report
Glacier Bancorp, Inc. (GBCI) : Free Stock Analysis Report
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