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GBOOY or BX: 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 Blackstone Inc. (BX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Financiero Banorte SAB de CV and Blackstone Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that GBOOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GBOOY currently has a forward P/E ratio of 7.91, while BX has a forward P/E of 20.72. We also note that GBOOY has a PEG ratio of 0.66. 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 1.43.

Another notable valuation metric for GBOOY is its P/B ratio of 1.95. 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 3.69.

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

GBOOY 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 GBOOY is likely the superior value option right now.


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