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DOW vs. APD: Which Stock Should Value Investors Buy Now?
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Investors interested in Chemical - Diversified stocks are likely familiar with Dow Inc. (DOW - Free Report) and Air Products and Chemicals (APD - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Dow Inc. has a Zacks Rank of #2 (Buy), while Air Products and Chemicals has a Zacks Rank of #4 (Sell) right now. This means that DOW'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.
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.
DOW currently has a forward P/E ratio of 17.90, while APD has a forward P/E of 29.24. We also note that DOW has a PEG ratio of 0.93. 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. APD currently has a PEG ratio of 3.57.
Another notable valuation metric for DOW is its P/B ratio of 3.59. 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, APD has a P/B of 4.47.
These metrics, and several others, help DOW earn a Value grade of A, while APD has been given a Value grade of C.
DOW stands above APD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOW is the superior value option right now.
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DOW vs. APD: Which Stock Should Value Investors Buy Now?
Investors interested in Chemical - Diversified stocks are likely familiar with Dow Inc. (DOW - Free Report) and Air Products and Chemicals (APD - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Dow Inc. has a Zacks Rank of #2 (Buy), while Air Products and Chemicals has a Zacks Rank of #4 (Sell) right now. This means that DOW'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.
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.
DOW currently has a forward P/E ratio of 17.90, while APD has a forward P/E of 29.24. We also note that DOW has a PEG ratio of 0.93. 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. APD currently has a PEG ratio of 3.57.
Another notable valuation metric for DOW is its P/B ratio of 3.59. 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, APD has a P/B of 4.47.
These metrics, and several others, help DOW earn a Value grade of A, while APD has been given a Value grade of C.
DOW stands above APD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOW is the superior value option right now.