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PGC Or GWB: Which Is The Better Value Stock Right Now?

By Zacks Investment ResearchStock MarketsMar 19, 2020 11:40PM ET
www.investing.com/analysis/pgc-or-gwb-which-is-the-better-value-stock-right-now-200517762
PGC Or GWB: Which Is The Better Value Stock Right Now?
By Zacks Investment Research   |  Mar 19, 2020 11:40PM ET
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Investors interested in stocks from the Banks - Northeast sector have probably already heard of Peapack-Gladstone (PGC) and Great Western Bancorp (GWB). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Peapack-Gladstone has a Zacks Rank of #2 (Buy), while Great Western Bancorp has a Zacks Rank of #4 (Sell) right now. This means that PGC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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 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.

PGC currently has a forward P/E ratio of 5.23, while GWB has a forward P/E of 7.23. We also note that PGC has a PEG ratio of 0.84. 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. GWB currently has a PEG ratio of 3.16.

Another notable valuation metric for PGC is its P/B ratio of 0.51. 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, GWB has a P/B of 0.62.

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

PGC stands above GWB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PGC is the superior value option right now.



Peapack-Gladstone Financial Corporation (PGC): Free Stock Analysis Report

Great Western Bancorp, Inc. (GWB): Free Stock Analysis Report

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PGC Or GWB: Which Is The Better Value Stock Right Now?
 

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PGC Or GWB: Which Is The Better Value Stock Right Now?

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