CIXX or BX: Which Is the Better Value Stock Right Now?
CIXX vs. BX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either CI Financial Corp. (CIXX) or Blackstone Inc. (BX). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
CI Financial Corp. and Blackstone Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that CIXX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 8.51, while BX has a forward P/E of 31.03. We also note that CIXX has a PEG ratio of 1.06. 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 1.23.
Another notable valuation metric for CIXX is its P/B ratio of 3.41. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BX has a P/B of 4.46.
These metrics, and several others, help CIXX earn a Value grade of B, while BX has been given a Value grade of D.
CIXX stands above BX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CIXX is the superior value option right now.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CI Financial Corp. (CIXX): Free Stock Analysis Report
Blackstone Inc. (BX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research