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WF or BX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Financial - Investment Management sector might want to consider either Woori Bank (WF - Free Report) or Blackstone Group (BX - 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.

Right now, Woori Bank is sporting a Zacks Rank of #1 (Strong Buy), while Blackstone Group has a Zacks Rank of #3 (Hold). This means that WF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

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.

WF currently has a forward P/E ratio of 6.25, while BX has a forward P/E of 12.50. We also note that WF has a PEG ratio of 1.04. 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. BX currently has a PEG ratio of 1.14.

Another notable valuation metric for WF is its P/B ratio of 0.56. 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 1.78.

Based on these metrics and many more, WF holds a Value grade of A, while BX has a Value grade of C.

WF stands above BX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WF is the superior value option right now.


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