CIXX vs MCO: Which Stock Should Investors Buy Now?
IInvestors interested in financial services and miscellaneous stocks are likely to be familiar with CI Financial Corp. (CIXX) and Moody’s (MCO). But which of these two stocks offers the best value for value investors right now? We will have to take a closer look.
Everyone has their own methods of finding great value opportunities, but our model includes pairing an impressive score in the Value category of our style scoring system with a strong Zacks Rank. The proven Zacks Rankings focus on companies with positive review trends, and our style scores highlight stocks with specific characteristics.
CI Financial Corp. and Moody’s are ranked 2 (Buy) and 3 (Hold) respectively for Zacks. Zacks Rank favors stocks that have recently seen their earnings estimates revised positively, so investors need to be assured that CIXX has an improving earnings outlook. However, value investors will care about more than that.
Value investors also try to analyze a wide range of traditional numbers and metrics to help determine if a company is undervalued at its current stock price level.
The Style Score Value takes into account a variety of key fundamental metrics including P / E Ratio, P / S Ratio, Earnings Yield, Cash Flow Per Share, and a number of other commonly used key metrics. by value investors.
CIXX currently has a forward P / E ratio of 9.12, while MCO has a forward P / E of 32.65. We also note that CIXX has a PEG ratio of 1.14. This popular figure is similar to the widely used P / E ratio, but the PEG ratio also takes into account the expected growth rate of a company’s EPS. MCO currently has a PEG ratio of 2.97.
Another notable valuation metric for CIXX is its P / N ratio of 3.66. The P / B ratio pits the market value of a stock against its book value, which is defined as total assets minus total liabilities. For comparison, MCO has a P / B of 28.28.
These are just a few of the metrics contributing to the CIXX Value rating of B and the MCO Value rating of D.
CIXX has seen stronger estimate revision activity and has more attractive valuation metrics than MCO, so it looks like value investors will conclude that CIXX is the superior option right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.