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

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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Intercorp Financial Services Inc. (IFS - Free Report) and Cielo SA (CIOXY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Intercorp Financial Services Inc. has a Zacks Rank of #2 (Buy), while Cielo SA 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 IFS is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

IFS currently has a forward P/E ratio of 6.01, while CIOXY has a forward P/E of 7.36. We also note that IFS has a PEG ratio of 0.37. 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. CIOXY currently has a PEG ratio of 0.39.

Another notable valuation metric for IFS is its P/B ratio of 1.05. 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, CIOXY has a P/B of 1.08.

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

IFS sticks out from CIOXY in both our Zacks Rank and Style Scores models, so value investors will likely feel that IFS is the better option right now.


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Cielo SA (CIOXY) - free report >>

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