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IFS or BX: 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 Blackstone Inc. (BX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 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 #1 (Strong Buy), while Blackstone Inc. has a Zacks Rank of #2 (Buy) 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 just one piece of the puzzle for value investors.

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.

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 8.86, while BX has a forward P/E of 33.69. We also note that IFS has a PEG ratio of 0.36. 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. BX currently has a PEG ratio of 1.37.

Another notable valuation metric for IFS is its P/B ratio of 1.49. 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, BX has a P/B of 6.27.

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

IFS stands above BX 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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