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

MCO

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either CI Financial Corp. or Moody's (MCO - Free Report) . 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, CI Financial Corp. is sporting a Zacks Rank of #2 (Buy), while Moody's 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 CIXX 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CIXX currently has a forward P/E ratio of 9.56, while MCO has a forward P/E of 31.75. 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 2.89.

Another notable valuation metric for CIXX is its P/B ratio of 3.82. 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, MCO has a P/B of 27.50.

These are just a few of the metrics contributing to CIXX's Value grade of B and MCO's Value grade of D.

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

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