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CIXXF vs. BX: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either CI Financial Corp. (CIXXF - Free Report) or Blackstone Inc. (BX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Currently, CI Financial Corp. has a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CIXXF has an improving earnings outlook. But this is only part of the picture 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.

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 4.64, while BX has a forward P/E of 25.97. We also note that CIXXF has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BX currently has a PEG ratio of 1.45.

Another notable valuation metric for CIXXF is its P/B ratio of 2.16. 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 5.38.

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

CIXXF sticks out from BX in both our Zacks Rank and Style Scores models, so value investors will likely feel that CIXXF is the better option right now.


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