CIOXY vs. BX: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Cielo SA (CIOXY) and Blackstone Inc. (BX). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Cielo SA has a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CIOXY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

CIOXY currently has a forward P/E ratio of 5.93, while BX has a forward P/E of 21.71. We also note that CIOXY has a PEG ratio of 0.31. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BX currently has a PEG ratio of 1.50.

Another notable valuation metric for CIOXY is its P/B ratio of 0.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BX has a P/B of 3.86.

These metrics, and several others, help CIOXY earn a Value grade of A, while BX has been given a Value grade of D.

CIOXY has seen stronger estimate revision activity and sports more attractive valuation metrics than BX, so it seems like value investors will conclude that CIOXY is the superior option right now.

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