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CIXX vs. MCO: Which Stock Should Value Investors Buy Now?

CIXX vs. MCO: Which Stock Is the Better Value Option?

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This story originally appeared on Zacks

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either CI Financial Corp. (CIXX) or Moody's (MCO). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

- Zacks

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 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.

Currently, CI Financial Corp. has a Zacks Rank of #2 (Buy), while Moody's has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CIXX is likely seeing its earnings outlook improve to a greater extent. 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.

CIXX currently has a forward P/E ratio of 9.57, while MCO has a forward P/E of 31.68. We also note that CIXX has a PEG ratio of 1.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCO currently has a PEG ratio of 2.88.

Another notable valuation metric for CIXX is its P/B ratio of 3.71. 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, MCO has a P/B of 27.44.

These metrics, and several others, help CIXX earn a Value grade of B, while MCO has been given a Value grade of D.

CIXX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CIXX is likely the superior value option right now.



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CI Financial Corp. (CIXX): Free Stock Analysis Report

 

Moody's Corporation (MCO): Free Stock Analysis Report

 

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