We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CIXX vs. STEP: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with CI Financial Corp. and StepStone Group Inc. (STEP - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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 StepStone Group Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that CIXX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CIXX currently has a forward P/E ratio of 4.01, while STEP has a forward P/E of 19.47. We also note that CIXX has a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STEP currently has a PEG ratio of 2.06.
Another notable valuation metric for CIXX is its P/B ratio of 1.47. 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, STEP has a P/B of 1.68.
Based on these metrics and many more, CIXX holds a Value grade of A, while STEP has a Value grade of C.
CIXX has seen stronger estimate revision activity and sports more attractive valuation metrics than STEP, so it seems like value investors will conclude that CIXX is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CIXX vs. STEP: Which Stock Is the Better Value Option?
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with CI Financial Corp. and StepStone Group Inc. (STEP - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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 StepStone Group Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that CIXX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CIXX currently has a forward P/E ratio of 4.01, while STEP has a forward P/E of 19.47. We also note that CIXX has a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STEP currently has a PEG ratio of 2.06.
Another notable valuation metric for CIXX is its P/B ratio of 1.47. 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, STEP has a P/B of 1.68.
Based on these metrics and many more, CIXX holds a Value grade of A, while STEP has a Value grade of C.
CIXX has seen stronger estimate revision activity and sports more attractive valuation metrics than STEP, so it seems like value investors will conclude that CIXX is the superior option right now.