GBOOY vs. BX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Grupo Financiero Banorte SAB de CV (GBOOY) or 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Grupo Financiero Banorte SAB de CV is sporting a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GBOOY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GBOOY currently has a forward P/E ratio of 8.20, while BX has a forward P/E of 16.24. We also note that GBOOY has a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BX currently has a PEG ratio of 2.03.
Another notable valuation metric for GBOOY is its P/B ratio of 1.84. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BX has a P/B of 2.98.
These metrics, and several others, help GBOOY earn a Value grade of B, while BX has been given a Value grade of C.
GBOOY stands above BX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GBOOY is the superior value option right now.
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Grupo Financiero Banorte SAB de CV (GBOOY) : Free Stock Analysis Report
Blackstone Inc. (BX) : Free Stock Analysis Report
