Investors with an interest in Paper and Related Products stocks have likely encountered both Domtar and Neenah Paper . 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 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.
Right now, Domtar is sporting a Zacks Rank of #1 (Strong Buy), while Neenah Paper has a Zacks Rank of #4 (Sell). This means that UFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UFS currently has a forward P/E ratio of 12.89, while NP has a forward P/E of 19.86. We also note that UFS has a PEG ratio of 2.58. 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. NP currently has a PEG ratio of 3.97.
Another notable valuation metric for UFS is its P/B ratio of 1.21. 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, NP has a P/B of 3.61.
These metrics, and several others, help UFS earn a Value grade of A, while NP has been given a Value grade of C.
UFS stands above NP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UFS is the superior value option right now.
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UFS or NP: Which Is the Better Value Stock Right Now?
Investors with an interest in Paper and Related Products stocks have likely encountered both Domtar and Neenah Paper . 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 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.
Right now, Domtar is sporting a Zacks Rank of #1 (Strong Buy), while Neenah Paper has a Zacks Rank of #4 (Sell). This means that UFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UFS currently has a forward P/E ratio of 12.89, while NP has a forward P/E of 19.86. We also note that UFS has a PEG ratio of 2.58. 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. NP currently has a PEG ratio of 3.97.
Another notable valuation metric for UFS is its P/B ratio of 1.21. 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, NP has a P/B of 3.61.
These metrics, and several others, help UFS earn a Value grade of A, while NP has been given a Value grade of C.
UFS stands above NP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UFS is the superior value option right now.