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PPG or NVZMY: Which Is the Better Value Stock Right Now?
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Investors interested in Chemical - Specialty stocks are likely familiar with PPG Industries (PPG - Free Report) and Novozymes A/S (NVZMY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
PPG Industries and Novozymes A/S are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PPG is likely seeing its earnings outlook improve to a greater extent. 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.
PPG currently has a forward P/E ratio of 19.16, while NVZMY has a forward P/E of 26.07. We also note that PPG has a PEG ratio of 1.18. 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. NVZMY currently has a PEG ratio of 9.95.
Another notable valuation metric for PPG is its P/B ratio of 4.51. 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, NVZMY has a P/B of 5.52.
These are just a few of the metrics contributing to PPG's Value grade of A and NVZMY's Value grade of C.
PPG stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PPG is the superior value option right now.
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PPG or NVZMY: Which Is the Better Value Stock Right Now?
Investors interested in Chemical - Specialty stocks are likely familiar with PPG Industries (PPG - Free Report) and Novozymes A/S (NVZMY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
PPG Industries and Novozymes A/S are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PPG is likely seeing its earnings outlook improve to a greater extent. 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.
PPG currently has a forward P/E ratio of 19.16, while NVZMY has a forward P/E of 26.07. We also note that PPG has a PEG ratio of 1.18. 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. NVZMY currently has a PEG ratio of 9.95.
Another notable valuation metric for PPG is its P/B ratio of 4.51. 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, NVZMY has a P/B of 5.52.
These are just a few of the metrics contributing to PPG's Value grade of A and NVZMY's Value grade of C.
PPG stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PPG is the superior value option right now.