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ARKAY vs. AKZOY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Arkema SA (ARKAY - Free Report) or Akzo Nobel NV (AKZOY - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Arkema SA and Akzo Nobel NV are both sporting a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARKAY currently has a forward P/E ratio of 15.10, while AKZOY has a forward P/E of 22.41. We also note that ARKAY has a PEG ratio of 0.58. 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. AKZOY currently has a PEG ratio of 1.61.
Another notable valuation metric for ARKAY is its P/B ratio of 1.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AKZOY has a P/B of 3.35.
These metrics, and several others, help ARKAY earn a Value grade of A, while AKZOY has been given a Value grade of D.
Both ARKAY and AKZOY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARKAY is the superior value option right now.
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ARKAY vs. AKZOY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Chemical - Diversified sector might want to consider either Arkema SA (ARKAY - Free Report) or Akzo Nobel NV (AKZOY - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Arkema SA and Akzo Nobel NV are both sporting a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARKAY currently has a forward P/E ratio of 15.10, while AKZOY has a forward P/E of 22.41. We also note that ARKAY has a PEG ratio of 0.58. 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. AKZOY currently has a PEG ratio of 1.61.
Another notable valuation metric for ARKAY is its P/B ratio of 1.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AKZOY has a P/B of 3.35.
These metrics, and several others, help ARKAY earn a Value grade of A, while AKZOY has been given a Value grade of D.
Both ARKAY and AKZOY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ARKAY is the superior value option right now.