Back to top

Image: Bigstock

IX vs. SLFPY: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Orix (IX - Free Report) and Standard Life PLC Unsponsored ADR (SLFPY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Orix and Standard Life PLC Unsponsored ADR are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 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.

IX currently has a forward P/E ratio of 6.16, while SLFPY has a forward P/E of 13.85. We also note that IX has a PEG ratio of 0.85. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SLFPY currently has a PEG ratio of 4.78.

Another notable valuation metric for IX is its P/B ratio of 0.72. 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, SLFPY has a P/B of 0.82.

Based on these metrics and many more, IX holds a Value grade of A, while SLFPY has a Value grade of F.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Orix Corp Ads (IX) - free report >>

Abrdn PLC Unsponsored ADR (SLFPY) - free report >>

Published in