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BSRR vs. PUB: Which Stock Is the Better Value Option?

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Investors interested in Banks - West stocks are likely familiar with Sierra Bancorp (BSRR - Free Report) and Peoples Utah Bancorp . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Sierra Bancorp and Peoples Utah Bancorp are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BSRR likely has seen a stronger improvement to its earnings outlook than PUB has recently. 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.

BSRR currently has a forward P/E ratio of 15.06, while PUB has a forward P/E of 17.16. We also note that BSRR has a PEG ratio of 1.88. 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. PUB currently has a PEG ratio of 2.14.

Another notable valuation metric for BSRR is its P/B ratio of 1.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PUB has a P/B of 2.49.

These metrics, and several others, help BSRR earn a Value grade of B, while PUB has been given a Value grade of C.

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


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