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IX vs. HASI: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Orix (IX - Free Report) or HA Sustainable Infrastructure Capital (HASI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Orix has a Zacks Rank of #1 (Strong Buy), while HA Sustainable Infrastructure Capital has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IX has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

IX currently has a forward P/E ratio of 9.22, while HASI has a forward P/E of 13.92. We also note that IX has a PEG ratio of 0.88. 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. HASI currently has a PEG ratio of 1.16.

Another notable valuation metric for IX is its P/B ratio of 0.93. 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, HASI has a P/B of 1.72.

These are just a few of the metrics contributing to IX's Value grade of A and HASI's Value grade of D.

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


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