ASB vs. UMBF: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - Midwest sector might want to consider either Associated Banc-Corp (ASB) or UMB Financial (UMBF). 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 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.
Associated Banc-Corp and UMB Financial are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.
ASB currently has a forward P/E ratio of 14.36, while UMBF has a forward P/E of 15.13. We also note that ASB has a PEG ratio of 1.80. 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. UMBF currently has a PEG ratio of 4.30.
Another notable valuation metric for ASB is its P/B ratio of 0.82. 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, UMBF has a P/B of 1.34.
These metrics, and several others, help ASB earn a Value grade of B, while UMBF has been given a Value grade of F.
Both ASB and UMBF are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASB is the superior value option right now.
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Associated BancCorp (ASB) : Free Stock Analysis Report
UMB Financial Corporation (UMBF) : Free Stock Analysis Report
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