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CE or DSEY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Celanese (CE - Free Report) and Diversey Holdings, Ltd. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Currently, Celanese has a Zacks Rank of #2 (Buy), while Diversey Holdings, Ltd. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CE has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CE currently has a forward P/E ratio of 9.68, while DSEY has a forward P/E of 28.17. We also note that CE has a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DSEY currently has a PEG ratio of 1.98.
Another notable valuation metric for CE is its P/B ratio of 4.45. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DSEY has a P/B of 8.05.
These are just a few of the metrics contributing to CE's Value grade of A and DSEY's Value grade of C.
CE stands above DSEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CE is the superior value option right now.
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CE or DSEY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Celanese (CE - Free Report) and Diversey Holdings, Ltd. . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Currently, Celanese has a Zacks Rank of #2 (Buy), while Diversey Holdings, Ltd. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CE has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
CE currently has a forward P/E ratio of 9.68, while DSEY has a forward P/E of 28.17. We also note that CE has a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DSEY currently has a PEG ratio of 1.98.
Another notable valuation metric for CE is its P/B ratio of 4.45. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DSEY has a P/B of 8.05.
These are just a few of the metrics contributing to CE's Value grade of A and DSEY's Value grade of C.
CE stands above DSEY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CE is the superior value option right now.