Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either CI Financial Corp. or Blackstone Inc. (BX - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

CI Financial Corp. and Blackstone Inc. are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 4.15, while BX has a forward P/E of 18.09. We also note that CIXX has a PEG ratio of 0.52. 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. BX currently has a PEG ratio of 1.77.

Another notable valuation metric for CIXX is its P/B ratio of 1.46. 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 3.27.

Based on these metrics and many more, CIXX holds a Value grade of A, while BX has a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Blackstone Inc. (BX) - free report >>

Published in