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EMN or AIQUY: Which Is the Better Value Stock Right Now?

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Investors interested in Chemical - Diversified stocks are likely familiar with Eastman Chemical (EMN - Free Report) and Air Liquide (AIQUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Eastman Chemical and Air Liquide are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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.

EMN currently has a forward P/E ratio of 13.69, while AIQUY has a forward P/E of 26.51. We also note that EMN has a PEG ratio of 3.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AIQUY currently has a PEG ratio of 5.27.

Another notable valuation metric for EMN is its P/B ratio of 2.21. 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, AIQUY has a P/B of 3.74.

Based on these metrics and many more, EMN holds a Value grade of B, while AIQUY has a Value grade of D.

Both EMN and AIQUY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMN is the superior value option right now.


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