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IFS vs. GBOOY: Which Stock Is the Better Value Option?

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Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Intercorp Financial Services Inc. (IFS - Free Report) and Grupo Financiero Banorte SAB de CV (GBOOY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Intercorp Financial Services Inc. and Grupo Financiero Banorte SAB de CV are sporting 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. But this is just one piece of the puzzle 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.

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.

IFS currently has a forward P/E ratio of 7.09, while GBOOY has a forward P/E of 9.23. We also note that IFS has a PEG ratio of 0.48. 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. GBOOY currently has a PEG ratio of 0.64.

Another notable valuation metric for IFS is its P/B ratio of 1.30. 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, GBOOY has a P/B of 1.60.

Based on these metrics and many more, IFS holds a Value grade of B, while GBOOY has a Value grade of C.

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


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Grupo Financiero Banorte SAB de CV (GBOOY) - free report >>

Intercorp Financial Services Inc. (IFS) - free report >>

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