GWB vs. TSC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Northeast sector might want to consider either Great Western Bancorp (GWB) or 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Great Western Bancorp and TriState Capital are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GWB is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
GWB currently has a forward P/E ratio of 14.70, while TSC has a forward P/E of 17.06. We also note that GWB has a PEG ratio of 1.29. 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. TSC currently has a PEG ratio of 1.42.
Another notable valuation metric for GWB is its P/B ratio of 1.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TSC has a P/B of 1.90.
These metrics, and several others, help GWB earn a Value grade of B, while TSC has been given a Value grade of D.
GWB 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 GWB is likely the superior value 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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