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ARKAY vs. AIQUY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Arkema SA (ARKAY - Free Report) and Air Liquide (AIQUY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Arkema SA has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ARKAY likely has seen a stronger improvement to its earnings outlook than AIQUY has recently. 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.

ARKAY currently has a forward P/E ratio of 17.26, while AIQUY has a forward P/E of 27.66. We also note that ARKAY has a PEG ratio of 0.79. 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. AIQUY currently has a PEG ratio of 4.81.

Another notable valuation metric for ARKAY is its P/B ratio of 1.64. 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, AIQUY has a P/B of 3.80.

These are just a few of the metrics contributing to ARKAY's Value grade of A and AIQUY's Value grade of C.

ARKAY has seen stronger estimate revision activity and sports more attractive valuation metrics than AIQUY, so it seems like value investors will conclude that ARKAY is the superior option right now.


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