Back to top

Image: Bigstock

HWC vs. SNV: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Banks - Southeast stocks have likely encountered both Hancock Whitney (HWC - Free Report) and Synovus Financial (SNV - Free Report) . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Hancock Whitney and Synovus Financial are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HWC currently has a forward P/E ratio of 10.82, while SNV has a forward P/E of 12.30. We also note that HWC has a PEG ratio of 1.35. 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. SNV currently has a PEG ratio of 1.54.

Another notable valuation metric for HWC is its P/B ratio of 1.01. 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, SNV has a P/B of 1.41.

These metrics, and several others, help HWC earn a Value grade of B, while SNV has been given a Value grade of D.

Both HWC and SNV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HWC is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Synovus Financial Corp. (SNV) - free report >>

Hancock Whitney Corporation (HWC) - free report >>

Published in