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IFS vs. BX: Which Stock Is the Better Value Option?

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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 is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Right now, Intercorp Financial Services Inc. is sporting a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #4 (Sell). This means that IFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

IFS currently has a forward P/E ratio of 8.48, while BX has a forward P/E of 20.17. We also note that IFS has a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BX currently has a PEG ratio of 1.46.

Another notable valuation metric for IFS is its P/B ratio of 1.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BX has a P/B of 4.52.

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

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

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