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GBOOY or BAM: Which Is the Better Value Stock Right Now?

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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Grupo Financiero Banorte SAB de CV (GBOOY - Free Report) and Brookfield Asset Management (BAM - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Grupo Financiero Banorte SAB de CV and Brookfield Asset Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GBOOY has an improving earnings 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 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.

GBOOY currently has a forward P/E ratio of 8.47, while BAM has a forward P/E of 23.98. We also note that GBOOY has a PEG ratio of 1.05. 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. BAM currently has a PEG ratio of 1.52.

Another notable valuation metric for GBOOY is its P/B ratio of 2.22. 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, BAM has a P/B of 8.32.

These are just a few of the metrics contributing to GBOOY's Value grade of A and BAM's Value grade of D.

GBOOY has seen stronger estimate revision activity and sports more attractive valuation metrics than BAM, so it seems like value investors will conclude that GBOOY is the superior option right now.

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