Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Axalta Coating Systems (AXTA - Free Report) and Novozymes A/S (NVZMY - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Axalta Coating Systems has a Zacks Rank of #1 (Strong Buy), while Novozymes A/S has a Zacks Rank of #3 (Hold) right now. This means that AXTA'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.
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.
AXTA currently has a forward P/E ratio of 19.58, while NVZMY has a forward P/E of 30.45. We also note that AXTA has a PEG ratio of 1.56. 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. NVZMY currently has a PEG ratio of 10.61.
Another notable valuation metric for AXTA is its P/B ratio of 4.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NVZMY has a P/B of 5.55.
Based on these metrics and many more, AXTA holds a Value grade of B, while NVZMY has a Value grade of C.
AXTA stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Axalta Coating Systems (AXTA - Free Report) and Novozymes A/S (NVZMY - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Axalta Coating Systems has a Zacks Rank of #1 (Strong Buy), while Novozymes A/S has a Zacks Rank of #3 (Hold) right now. This means that AXTA'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.
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.
AXTA currently has a forward P/E ratio of 19.58, while NVZMY has a forward P/E of 30.45. We also note that AXTA has a PEG ratio of 1.56. 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. NVZMY currently has a PEG ratio of 10.61.
Another notable valuation metric for AXTA is its P/B ratio of 4.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NVZMY has a P/B of 5.55.
Based on these metrics and many more, AXTA holds a Value grade of B, while NVZMY has a Value grade of C.
AXTA stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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