Back to top

Image: Bigstock

CIB vs. IBN: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors with an interest in Banks - Foreign stocks have likely encountered both Grupo Cibest (CIB - Free Report) and ICICI Bank Limited (IBN - 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.

Right now, Grupo Cibest is sporting a Zacks Rank of #2 (Buy), while ICICI Bank Limited has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that CIB likely has seen a stronger improvement to its earnings outlook than IBN has recently. 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.

CIB currently has a forward P/E ratio of 7.57, while IBN has a forward P/E of 19.66. We also note that CIB has a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IBN currently has a PEG ratio of 1.54.

Another notable valuation metric for CIB is its P/B ratio of 2.4. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IBN has a P/B of 2.74.

These metrics, and several others, help CIB earn a Value grade of A, while IBN has been given a Value grade of C.

CIB is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CIB is likely the superior value option right now.


See More Zacks Research for These Tickers


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


ICICI Bank Limited (IBN) - free report >>

Grupo Cibest S.A. - Sponsored ADR (CIB) - free report >>

Published in