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

MCO

Investors interested in Financial - Miscellaneous Services stocks are likely familiar with CI Financial Corp. and Moody's (MCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both CI Financial Corp. and Moody's are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

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.

CIXX currently has a forward P/E ratio of 8.24, while MCO has a forward P/E of 32.07. We also note that CIXX has a PEG ratio of 1.03. 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. MCO currently has a PEG ratio of 3.21.

Another notable valuation metric for CIXX is its P/B ratio of 3.27. 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, MCO has a P/B of 29.76.

Based on these metrics and many more, CIXX holds a Value grade of B, while MCO has a Value grade of F.

Both CIXX and MCO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CIXX is the superior value option right now.

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