CIXXF or BX: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of CI Financial Corp. (CIXXF) and Blackstone Inc. (BX). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
CI Financial Corp. has a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CIXXF is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CIXXF currently has a forward P/E ratio of 3.66, while BX has a forward P/E of 18.88. We also note that CIXXF has a PEG ratio of 0.46. 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 1.31.
Another notable valuation metric for CIXXF is its P/B ratio of 1.40. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BX has a P/B of 3.21.
Based on these metrics and many more, CIXXF holds a Value grade of A, while BX has a Value grade of D.
CIXXF has seen stronger estimate revision activity and sports more attractive valuation metrics than BX, so it seems like value investors will conclude that CIXXF is the superior option right now.
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CI Financial Corp. (CIXXF) : Free Stock Analysis Report
Blackstone Inc. (BX) : Free Stock Analysis Report
