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EMN or PPG: Which Is the Better Value Stock Right Now?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Eastman Chemical (EMN - Free Report) and PPG Industries (PPG - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Eastman Chemical has a Zacks Rank of #2 (Buy), while PPG Industries has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EMN has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
EMN currently has a forward P/E ratio of 11.76, while PPG has a forward P/E of 16.76. We also note that EMN has a PEG ratio of 1.26. 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. PPG currently has a PEG ratio of 1.87.
Another notable valuation metric for EMN is its P/B ratio of 2.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PPG has a P/B of 4.86.
These metrics, and several others, help EMN earn a Value grade of B, while PPG has been given a Value grade of C.
EMN stands above PPG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EMN is the superior value option right now.
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EMN or PPG: Which Is the Better Value Stock Right Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Eastman Chemical (EMN - Free Report) and PPG Industries (PPG - 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Eastman Chemical has a Zacks Rank of #2 (Buy), while PPG Industries has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that EMN has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
EMN currently has a forward P/E ratio of 11.76, while PPG has a forward P/E of 16.76. We also note that EMN has a PEG ratio of 1.26. 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. PPG currently has a PEG ratio of 1.87.
Another notable valuation metric for EMN is its P/B ratio of 2.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PPG has a P/B of 4.86.
These metrics, and several others, help EMN earn a Value grade of B, while PPG has been given a Value grade of C.
EMN stands above PPG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EMN is the superior value option right now.