HBAN or CBSH: Which Is the Better Value Stock Right Now?

Core Viewpoint - The comparison between Huntington Bancshares (HBAN) and Commerce Bancshares (CBSH) indicates that HBAN is more attractive to value investors based on various financial metrics and rankings [1][3]. Group 1: Zacks Rank and Earnings Outlook - Huntington Bancshares has a Zacks Rank of 2 (Buy), while Commerce Bancshares has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for HBAN [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, indicating that HBAN is likely experiencing a more favorable earnings outlook [3]. Group 2: Valuation Metrics - HBAN has a forward P/E ratio of 12.08, significantly lower than CBSH's forward P/E of 17.58, indicating that HBAN may be undervalued [5]. - The PEG ratio for HBAN is 1.39, while CBSH's PEG ratio is 3.64, further suggesting that HBAN offers better value considering its expected EPS growth rate [5]. - HBAN's P/B ratio stands at 1.38 compared to CBSH's P/B of 2.52, reinforcing the notion that HBAN is a more attractive investment based on valuation metrics [6]. Group 3: Overall Value Grade - Based on the analysis of various valuation metrics, HBAN holds a Value grade of B, while CBSH has a Value grade of C, indicating that HBAN is the superior value option at this time [6].