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

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Investors looking for stocks in the Diversified Operations sector might want to consider either Grupo Cibest (CIB - Free Report) or Federal Signal (FSS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Grupo Cibest and Federal Signal are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that CIB likely has seen a stronger improvement to its earnings outlook than FSS has recently. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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 8.70, while FSS has a forward P/E of 26.82. We also note that CIB has a PEG ratio of 1.24. 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. FSS currently has a PEG ratio of 1.92.

Another notable valuation metric for CIB is its P/B ratio of 1.74. 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, FSS has a P/B of 5.09.

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

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


See More Zacks Research for These Tickers


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Federal Signal Corporation (FSS) - free report >>

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

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