Investors interested in Banks - Northeast stocks are likely familiar with Great Western Bancorp (GWB) and TriState Capital (TSC). 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.
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.
Currently, Great Western Bancorp has a Zacks Rank of #2 (Buy), while TriState Capital has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GWB 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GWB currently has a forward P/E ratio of 13.94, while TSC has a forward P/E of 16.96. We also note that GWB has a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSC currently has a PEG ratio of 1.41.
Another notable valuation metric for GWB is its P/B ratio of 1.35. 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, TSC has a P/B of 1.89.
Based on these metrics and many more, GWB holds a Value grade of B, while TSC has a Value grade of D.
GWB has seen stronger estimate revision activity and sports more attractive valuation metrics than TSC, so it seems like value investors will conclude that GWB is the superior option right now.
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Great Western Bancorp, Inc. (GWB) : Free Stock Analysis Report
TriState Capital Holdings, Inc. (TSC) : Free Stock Analysis Report
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