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BASFY vs. RDSMY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Chemical - Diversified sector have probably already heard of BASF SE (BASFY - Free Report) and Koninklijke DSM NV . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, BASF SE is sporting a Zacks Rank of #1 (Strong Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BASFY likely has seen a stronger improvement to its earnings outlook than RDSMY has recently. But this is just one piece of the puzzle for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BASFY currently has a forward P/E ratio of 11.60, while RDSMY has a forward P/E of 28.06. We also note that BASFY has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RDSMY currently has a PEG ratio of 1.82.
Another notable valuation metric for BASFY is its P/B ratio of 1.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDSMY has a P/B of 3.13.
Based on these metrics and many more, BASFY holds a Value grade of B, while RDSMY has a Value grade of C.
BASFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BASFY is likely the superior value option right now.
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BASFY vs. RDSMY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Chemical - Diversified sector have probably already heard of BASF SE (BASFY - Free Report) and Koninklijke DSM NV . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, BASF SE is sporting a Zacks Rank of #1 (Strong Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BASFY likely has seen a stronger improvement to its earnings outlook than RDSMY has recently. But this is just one piece of the puzzle for value investors.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BASFY currently has a forward P/E ratio of 11.60, while RDSMY has a forward P/E of 28.06. We also note that BASFY has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RDSMY currently has a PEG ratio of 1.82.
Another notable valuation metric for BASFY is its P/B ratio of 1.48. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDSMY has a P/B of 3.13.
Based on these metrics and many more, BASFY holds a Value grade of B, while RDSMY has a Value grade of C.
BASFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BASFY is likely the superior value option right now.