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

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Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of CI Financial Corp. and Blackstone Inc. (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.

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.

CI Financial Corp. has a Zacks Rank of #1 (Strong Buy), while Blackstone Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CIXX likely has seen a stronger improvement to its earnings outlook than BX has recently. But this is only part of the picture for value investors.

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.

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.

CIXX currently has a forward P/E ratio of 4.44, while BX has a forward P/E of 18.19. We also note that CIXX has a PEG ratio of 0.55. 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 1.78.

Another notable valuation metric for CIXX is its P/B ratio of 1.56. 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, BX has a P/B of 3.29.

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

CIXX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CIXX is likely the superior value option right now.


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