Advertisement
Canada markets open in 10 minutes

  • S&P/TSX

    22,011.72
    +139.76 (+0.64%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • DOW

    38,503.69
    +263.71 (+0.69%)
     

  • CAD/USD

    0.7291
    -0.0029 (-0.39%)
     

  • CRUDE OIL

    82.95
    -0.41 (-0.49%)
     

  • Bitcoin CAD

    90,640.18
    -62.54 (-0.07%)
     

  • CMC Crypto 200

    1,429.32
    +5.22 (+0.37%)
     

  • GOLD FUTURES

    2,336.40
    -5.70 (-0.24%)
     

  • RUSSELL 2000

    2,002.64
    +35.17 (+1.79%)
     

  • 10-Yr Bond

    4.6440
    +0.0460 (+1.00%)
     

  • NASDAQ futures

    17,699.00
    +92.25 (+0.52%)
     

  • VOLATILITY

    15.87
    +0.18 (+1.15%)
     

  • FTSE

    8,075.71
    +30.90 (+0.38%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • CAD/EUR

    0.6817
    -0.0019 (-0.28%)
     
MARKETS LIVE BLOG:

NASDAQ FUTURES POP, TESLA STOCK SURGES AFTER EARNINGS

Tesla shares jump after EV maker vows to speed up launch of more affordable models

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

Zacks Equity Research
·2 min read

Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both CI Financial Corp. (CIXX) and R1 RCM Inc. (RCM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, CI Financial Corp. has a Zacks Rank of #2 (Buy), while R1 RCM Inc. has a Zacks Rank of #4 (Sell). This means that CIXX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

ADVERTISEMENT

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CIXX currently has a forward P/E ratio of 7.20, while RCM has a forward P/E of 105.04. We also note that CIXX has a PEG ratio of 0.90. 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. RCM currently has a PEG ratio of 8.75.

Another notable valuation metric for CIXX is its P/B ratio of 2.58. 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, RCM has a P/B of 33.30.

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

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CI Financial Corp. (CIXX) : Free Stock Analysis Report
 
R1 RCM Inc. (RCM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research