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BASFY or AVNT: 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 BASF SE (BASFY - Free Report) or Avient (AVNT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 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.

Currently, both BASF SE and Avient are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BASFY currently has a forward P/E ratio of 10.62, while AVNT has a forward P/E of 15.99. We also note that BASFY has a PEG ratio of 0.71. 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. AVNT currently has a PEG ratio of 1.60.

Another notable valuation metric for BASFY is its P/B ratio of 1.54. 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, AVNT has a P/B of 2.48.

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

Both BASFY and AVNT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BASFY is the superior value option right now.


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