IX vs. GBOOY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of Orix (IX) and Grupo Financiero Banorte SAB de CV (GBOOY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Orix and Grupo Financiero Banorte SAB de CV are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
IX currently has a forward P/E ratio of 7.64, while GBOOY has a forward P/E of 8.12. We also note that IX has a PEG ratio of 0.40. 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. GBOOY currently has a PEG ratio of 0.56.
Another notable valuation metric for IX is its P/B ratio of 0.75. 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, GBOOY has a P/B of 1.53.
Based on these metrics and many more, IX holds a Value grade of A, while GBOOY has a Value grade of C.
Both IX and GBOOY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IX is the superior value option right now.
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Orix Corp Ads (IX) : Free Stock Analysis Report
Grupo Financiero Banorte SAB de CV (GBOOY) : Free Stock Analysis Report
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