LYB or AIQUY: Which Is the Better Value Stock Right Now?

AIQUY LYB

Investors interested in Chemical - Diversified stocks are likely familiar with LyondellBasell (LYB - Free Report) and Air Liquide (AIQUY - Free Report) . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

LyondellBasell has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LYB is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

LYB currently has a forward P/E ratio of 10.35, while AIQUY has a forward P/E of 27.10. We also note that LYB has a PEG ratio of 1.29. 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. AIQUY currently has a PEG ratio of 2.96.

Another notable valuation metric for LYB is its P/B ratio of 2.33. 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, AIQUY has a P/B of 3.60.

These metrics, and several others, help LYB earn a Value grade of A, while AIQUY has been given a Value grade of C.

LYB stands above AIQUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LYB is the superior value option right now.

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