Breaking Down CIB and HON: A Deep Dive Into Valuation Metrics for Smart Investors

When navigating the Diversified Operations sector, two names frequently appear on investors’ radars: Grupo Cibest (CIB) and Honeywell International Inc. (HON). But understanding which opportunity better suits a value-focused portfolio requires moving beyond surface-level comparisons. Let’s examine what the numbers actually tell us.

The Earnings Revision Factor

The Zacks Rank system provides a lens into recent analyst sentiment regarding earnings trajectories. CIB currently holds a Zacks Rank of #1 (Strong Buy), signaling that earnings forecasts have been revised upward more meaningfully. HON carries a Zacks Rank of #3 (Hold), reflecting a more muted outlook on estimate changes. For value investors, this distinction matters—positive estimate momentum often precedes price appreciation.

Dissecting Valuation: Where the Real Story Emerges

Traditional valuation metrics form the backbone of fundamental analysis. Here’s where CIB and HON diverge significantly.

Price-to-Earnings Analysis

CIB trades at a forward P/E ratio of 8.07, a figure that immediately stands out for its affordability. By contrast, HON commands a forward P/E of 18.22. This 2.26x difference suggests the market values Honeywell’s earnings stream at a substantial premium—whether justified depends on growth prospects.

Growth-Adjusted Valuation: The PEG Ratio

The PEG ratio refines the P/E picture by factoring in expected earnings growth. CIB’s PEG of 0.90 indicates earnings are expanding faster than the stock price appreciates—a hallmark of undervaluation. HON’s PEG of 2.59 tells a different story: growth expectations may not fully justify current valuation levels.

Book Value Comparison

The price-to-book ratio reveals how markets price assets relative to accounting value. CIB’s P/B of 1.77 shows the market values the company at less than two times its net assets. HON’s P/B of 6.93 reflects investor willingness to pay substantially more per dollar of book value—a premium that carries higher risk if expectations disappoint.

The Bottom Line: Why CIB Emerges as the Value Play

When synthesizing these metrics, CIB earns a Value grade of B within the Style Scores framework, while HON receives a C. The gap reflects multiple dimensions: stronger earnings momentum, lower multiples across key ratios, and more favorable growth-adjusted valuations.

For investors seeking exposure to the Diversified Operations sector without overpaying, the evidence points toward CIB as the more compelling value opportunity at current price levels. HON may offer stability, but CIB presents the superior risk-reward profile for bargain-hunting portfolios.