We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CHX vs. HWM: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either ChampionX (CHX - Free Report) or Howmet (HWM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, ChampionX is sporting a Zacks Rank of #2 (Buy), while Howmet has a Zacks Rank of #3 (Hold). This means that CHX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
CHX currently has a forward P/E ratio of 18.12, while HWM has a forward P/E of 23.38. We also note that CHX has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HWM currently has a PEG ratio of 0.95.
Another notable valuation metric for CHX is its P/B ratio of 2.47. 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, HWM has a P/B of 4.08.
These are just a few of the metrics contributing to CHX's Value grade of B and HWM's Value grade of D.
CHX stands above HWM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHX is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CHX vs. HWM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either ChampionX (CHX - Free Report) or Howmet (HWM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, ChampionX is sporting a Zacks Rank of #2 (Buy), while Howmet has a Zacks Rank of #3 (Hold). This means that CHX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
CHX currently has a forward P/E ratio of 18.12, while HWM has a forward P/E of 23.38. We also note that CHX has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HWM currently has a PEG ratio of 0.95.
Another notable valuation metric for CHX is its P/B ratio of 2.47. 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, HWM has a P/B of 4.08.
These are just a few of the metrics contributing to CHX's Value grade of B and HWM's Value grade of D.
CHX stands above HWM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHX is the superior value option right now.