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

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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Johnson Matthey PLC (JMPLY - Free Report) or 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Johnson Matthey PLC has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JMPLY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

JMPLY currently has a forward P/E ratio of 14.31, while AIQUY has a forward P/E of 26.63. We also note that JMPLY has a PEG ratio of 2.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AIQUY currently has a PEG ratio of 4.94.

Another notable valuation metric for JMPLY is its P/B ratio of 2.55. 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, AIQUY has a P/B of 3.69.

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

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


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