FHB or SIVB: Which Is the Better Value Stock Right Now?
FHB vs. SIVB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Banks - West sector might want to consider either First Hawaiian (FHB) or SVB Financial (SIVB). 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.
First Hawaiian and SVB Financial are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FHB likely has seen a stronger improvement to its earnings outlook than SIVB has recently. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
FHB currently has a forward P/E ratio of 12.98, while SIVB has a forward P/E of 21.63. We also note that FHB has a PEG ratio of 1.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SIVB currently has a PEG ratio of 2.70.
Another notable valuation metric for FHB is its P/B ratio of 1.29. 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, SIVB has a P/B of 3.05.
These metrics, and several others, help FHB earn a Value grade of B, while SIVB has been given a Value grade of C.
FHB has seen stronger estimate revision activity and sports more attractive valuation metrics than SIVB, so it seems like value investors will conclude that FHB is the superior option right now.
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First Hawaiian, Inc. (FHB): Free Stock Analysis Report
SVB Financial Group (SIVB): Free Stock Analysis Report
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