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GBOOY vs. BX: Which Stock Should Value Investors Buy Now?

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Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Grupo Financiero Banorte SAB de CV (GBOOY - 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.

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 has a Zacks Rank of #1 (Strong Buy), while Blackstone Inc. has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GBOOY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 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 8.98, while BX has a forward P/E of 23.73. We also note that GBOOY has a PEG ratio of 0.76. 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 3.32.

Another notable valuation metric for GBOOY is its P/B ratio of 2.39. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BX has a P/B of 4.86.

These are just a few of the metrics contributing to GBOOY's Value grade of B and BX's Value grade of F.

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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