IFS vs. AXP: Which Stock Is the Better Value Option?

Core Viewpoint - The article compares Intercorp Financial Services Inc. (IFS) and American Express (AXP) to determine which stock is more attractive to value investors [1]. Group 1: Company Rankings and Outlook - IFS currently holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to AXP, which has a Zacks Rank of 3 (Hold) [3]. - The improvement in earnings outlook for IFS is noted to be stronger than that of AXP [3]. Group 2: Valuation Metrics - IFS has a forward P/E ratio of 8.71, significantly lower than AXP's forward P/E of 20.86, suggesting that IFS may be undervalued [5]. - The PEG ratio for IFS is 0.35, while AXP's PEG ratio is 1.54, indicating that IFS has a better valuation relative to its expected earnings growth [5]. - IFS has a P/B ratio of 1.46 compared to AXP's P/B of 7.12, further supporting the notion that IFS is undervalued [6]. - These metrics contribute to IFS earning a Value grade of A, while AXP has a Value grade of C, making IFS a more attractive option for value investors [6].