Back to top

Image: Bigstock

DBOEY or CBOE: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Securities and Exchanges sector have probably already heard of Deutsche Boerse AG (DBOEY - Free Report) and CBOE Global (CBOE - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Deutsche Boerse AG has a Zacks Rank of #2 (Buy), while CBOE Global has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DBOEY likely has seen a stronger improvement to its earnings outlook than CBOE has recently. However, value investors will care about much more than just this.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DBOEY currently has a forward P/E ratio of 16.43, while CBOE has a forward P/E of 21.24. We also note that DBOEY has a PEG ratio of 1.43. 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. CBOE currently has a PEG ratio of 3.25.

Another notable valuation metric for DBOEY is its P/B ratio of 3.50. 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, CBOE has a P/B of 4.45.

These metrics, and several others, help DBOEY earn a Value grade of B, while CBOE has been given a Value grade of F.

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


See More Zacks Research for These Tickers


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


Cboe Global Markets, Inc. (CBOE) - free report >>

Deutsche Boerse AG (DBOEY) - free report >>

Published in