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GBOOY or BX: Which Is the Better Value Stock Right Now?

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Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Grupo Financiero Banorte SAB de CV (GBOOY - Free Report) and Blackstone Inc. (BX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Grupo Financiero Banorte SAB de CV and Blackstone Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GBOOY likely has seen a stronger improvement to its earnings outlook than BX has recently. But this is just one piece of the puzzle for value investors.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GBOOY currently has a forward P/E ratio of 7.81, while BX has a forward P/E of 35.89. We also note that GBOOY has a PEG ratio of 0.91. 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 1.55.

Another notable valuation metric for GBOOY is its P/B ratio of 1.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BX has a P/B of 6.79.

These metrics, and several others, help GBOOY earn a Value grade of A, while BX has been given a Value grade of D.

GBOOY has seen stronger estimate revision activity and sports more attractive valuation metrics than BX, so it seems like value investors will conclude that GBOOY is the superior option right now.


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