Yahoo Finance IFS or BX: Which Is the Better Value Stock Right Now?
Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Intercorp Financial Services Inc. (IFS) and Blackstone Inc. (BX). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Intercorp Financial Services Inc. has a Zacks Rank of #2 (Buy), while Blackstone Inc. has a Zacks Rank of #3 (Hold) right now. This means that IFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
IFS currently has a forward P/E ratio of 6.85, while BX has a forward P/E of 25.63. We also note that IFS has a PEG ratio of 0.27. 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 1.02.
Another notable valuation metric for IFS is its P/B ratio of 1.03. 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 4.98.
These metrics, and several others, help IFS earn a Value grade of B, while BX has been given a Value grade of D.
IFS has seen stronger estimate revision activity and sports more attractive valuation metrics than BX, so it seems like value investors will conclude that IFS is the superior option right now.
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Intercorp Financial Services Inc. (IFS) : Free Stock Analysis Report
Blackstone Inc. (BX) : Free Stock Analysis Report
