MATV vs. NVZMY: Which Stock Is the Better Value Option?

NVZMY MATV

Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Mativ Holdings (MATV - 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 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, both Mativ Holdings and Novozymes A/S are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MATV currently has a forward P/E ratio of 12.07, while NVZMY has a forward P/E of 31.62. We also note that MATV has a PEG ratio of 2.01. 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. NVZMY currently has a PEG ratio of 4.31.

Another notable valuation metric for MATV is its P/B ratio of 1.03. 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 13.71.

These are just a few of the metrics contributing to MATV's Value grade of A and NVZMY's Value grade of F.

Both MATV and NVZMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MATV is the superior value option right now.

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