CIXX or AXP: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Financial - Miscellaneous Services sector have probably already heard of CI Financial Corp. (CIXX) and American Express (AXP). 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

CI Financial Corp. has a Zacks Rank of #2 (Buy), while American Express 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 CIXX has an improving earnings 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.

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.

CIXX currently has a forward P/E ratio of 7.74, while AXP has a forward P/E of 21.91. We also note that CIXX has a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AXP currently has a PEG ratio of 1.62.

Another notable valuation metric for CIXX is its P/B ratio of 2.99. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AXP has a P/B of 5.42.

Based on these metrics and many more, CIXX holds a Value grade of B, while AXP has a Value grade of C.

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

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CI Financial Corp. (CIXX) : Free Stock Analysis Report
 
American Express Company (AXP) : Free Stock Analysis Report
 
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