Shareholders in the Big Four banks endured a difficult August as all of the major banks saw their share prices slide lower.
The Commonwealth Bank of Australia Ltd (ASX: CBA) share price slumped 3.5% during the month while the National Australia Bank Ltd (ASX: NAB) share price fared worse, falling 4.5% in August.
So, are Commonwealth Bank shares better value than NAB shares at the moment and are either in the buy zone in September?
The case for Commonwealth Bank shares
While the Big Four share prices do tend to move largely in tandem, Commonwealth Bank can offer the advantage of being Australia's biggest bank.
This often translates to higher profits and a larger market cap, which could offer more share price stability relative to its Big Four peers.
However, recent share price woes in the banking sector have been largely a function of the 2018 Financial Services Royal Commission, with some banks emerging with fewer battle scars than the others.
Commonwealth Bank recently delivered its full-year results, and despite posting a $9.4 billion net profit, it still missed analyst estimates with its $8.6 billion underlying cash profit.
CBA is currently yielding a tidy 5.4% per annum and trades on an earnings multiple of 17x, meaning it could still be a good value buy, particularly given its move towards greater efficiency with the sale of Colonial First State Global Asset Management.
Another benefit for Commonwealth Bank shares is that the company has already finished the release of its full-year results, while the likes of NAB, Westpac Banking Corporation Ltd (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are yet to announce.
With the potential for fewer major share price impacts before the year is out, Commonwealth Bank shares could offer greater stability for Fools wanting banking exposure in 2019.
But… are NAB shares better value?
NAB has long-held the title for highest-yielding Big Four bank and still does, as it is currently offering its shareholders 6.6% per annum in yield.
This is despite slashing its dividend earlier this year as fears that the bank would not be able to meet its regulatory capital requirements by the start of 2020 continued to grow.
However, NAB is currently sitting in a relatively more stable position and all eyes will be on its full-year results release on 7 November.
NAB currently boasts a market cap of $80.0 billion, compared to Commonwealth Bank's $140.8 billion, but does trade at a lower price-to-earnings (P/E) ratio of 13.4x as at Friday's close.
Foolish takeaway
While arguably the growth potential of the banking sector has been stunted by the 2018 Royal Commission, there haven't been many structural changes in the sector.
I'm personally not diving into Commonwealth Bank or NAB shares just at the minute, but I think these two could be the pick of the Big Four banking shares in late 2019 and early 2020.
