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CIB or ITT: Which Is the Better Value Stock Right Now?

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Investors interested in Diversified Operations stocks are likely familiar with Grupo Cibest (CIB - Free Report) and ITT (ITT - 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.

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

Grupo Cibest has a Zacks Rank of #1 (Strong Buy), while ITT has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CIB likely has seen a stronger improvement to its earnings outlook than ITT has recently. But this is only part of the picture 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 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.

CIB currently has a forward P/E ratio of 8.29, while ITT has a forward P/E of 26.62. We also note that CIB has a PEG ratio of 0.83. 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. ITT currently has a PEG ratio of 2.11.

Another notable valuation metric for CIB is its P/B ratio of 1.79. 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, ITT has a P/B of 5.18.

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

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


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