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OPBK or BANF: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Banks - Southwest sector might want to consider either OP Bancorp (OPBK - Free Report) or BancFirst (BANF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both OP Bancorp and BancFirst are holding a Zacks Rank of # 1 (Strong Buy). 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 piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

OPBK currently has a forward P/E ratio of 9.63, while BANF has a forward P/E of 14.06. We also note that OPBK has a PEG ratio of 0.96. 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. BANF currently has a PEG ratio of 2.01.

Another notable valuation metric for OPBK is its P/B ratio of 1.12. 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, BANF has a P/B of 1.92.

These are just a few of the metrics contributing to OPBK's Value grade of B and BANF's Value grade of C.

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


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