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IFS or MCO: Which Is the Better Value Stock Right Now?
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Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Intercorp Financial Services Inc. (IFS - Free Report) and 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Intercorp Financial Services Inc. has a Zacks Rank of #2 (Buy), while Moody's has a Zacks Rank of #3 (Hold) right now. This means that IFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
IFS currently has a forward P/E ratio of 6.08, while MCO has a forward P/E of 32.28. We also note that IFS has a PEG ratio of 0.37. 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. MCO currently has a PEG ratio of 2.93.
Another notable valuation metric for IFS is its P/B ratio of 1.06. 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, MCO has a P/B of 20.62.
Based on these metrics and many more, IFS holds a Value grade of B, while MCO has a Value grade of F.
IFS stands above MCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IFS is the superior value option right now.
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IFS or MCO: Which Is the Better Value Stock Right Now?
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Intercorp Financial Services Inc. (IFS - Free Report) and 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Intercorp Financial Services Inc. has a Zacks Rank of #2 (Buy), while Moody's has a Zacks Rank of #3 (Hold) right now. This means that IFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
IFS currently has a forward P/E ratio of 6.08, while MCO has a forward P/E of 32.28. We also note that IFS has a PEG ratio of 0.37. 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. MCO currently has a PEG ratio of 2.93.
Another notable valuation metric for IFS is its P/B ratio of 1.06. 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, MCO has a P/B of 20.62.
Based on these metrics and many more, IFS holds a Value grade of B, while MCO has a Value grade of F.
IFS stands above MCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IFS is the superior value option right now.