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ICL vs. NVZMY: Which Stock Should Value Investors Buy Now?
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Investors interested in Chemical - Specialty stocks are likely familiar with Israel Chemicals (ICL - Free Report) and Novozymes AS (NVZMY - 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.
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, Israel Chemicals is sporting a Zacks Rank of #2 (Buy), while Novozymes AS has a Zacks Rank of #4 (Sell). This means that ICL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
ICL currently has a forward P/E ratio of 15.71, while NVZMY has a forward P/E of 43.01. We also note that ICL has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVZMY currently has a PEG ratio of 9.35.
Another notable valuation metric for ICL is its P/B ratio of 2.04. 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 9.86.
Based on these metrics and many more, ICL holds a Value grade of B, while NVZMY has a Value grade of C.
ICL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ICL is likely the superior value option right now.
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ICL vs. NVZMY: Which Stock Should Value Investors Buy Now?
Investors interested in Chemical - Specialty stocks are likely familiar with Israel Chemicals (ICL - Free Report) and Novozymes AS (NVZMY - 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.
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, Israel Chemicals is sporting a Zacks Rank of #2 (Buy), while Novozymes AS has a Zacks Rank of #4 (Sell). This means that ICL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
ICL currently has a forward P/E ratio of 15.71, while NVZMY has a forward P/E of 43.01. We also note that ICL has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVZMY currently has a PEG ratio of 9.35.
Another notable valuation metric for ICL is its P/B ratio of 2.04. 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 9.86.
Based on these metrics and many more, ICL holds a Value grade of B, while NVZMY has a Value grade of C.
ICL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ICL is likely the superior value option right now.