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LU or BX: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Lufax Holding Ltd. Sponsored ADR (LU - Free Report) and Blackstone Inc. (BX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Lufax Holding Ltd. Sponsored ADR has a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LU is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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 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.

LU currently has a forward P/E ratio of 4.06, while BX has a forward P/E of 17.35. We also note that LU has a PEG ratio of 0.26. 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 1.05.

Another notable valuation metric for LU is its P/B ratio of 0.84. 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, BX has a P/B of 3.14.

These are just a few of the metrics contributing to LU's Value grade of A and BX's Value grade of C.

LU stands above BX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LU is the superior value option right now.


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