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CFG vs. FFIC: Which Stock Should Value Investors Buy Now?

Zacks
SYF vs. VIRT: Which Stock Is the Better Value Option?

Investors with an interest in Financial - Savings and Loan stocks have likely encountered both Citizens Financial Group (CFG) and Flushing Financial (FFIC). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Citizens Financial Group has a Zacks Rank of #2 (Buy), while Flushing Financial has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CFG is likely seeing its earnings outlook improve to a greater extent. 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.

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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.

CFG currently has a forward P/E ratio of 9.39, while FFIC has a forward P/E of 12.09. We also note that CFG has a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FFIC currently has a PEG ratio of 1.08.

Another notable valuation metric for CFG is its P/B ratio of 0.79. 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, FFIC has a P/B of 1.14.

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

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


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Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report
 
Flushing Financial Corporation (FFIC) : Free Stock Analysis Report
 
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