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DOW vs. AIQUY: Which Stock Is the Better Value Option?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Dow Inc. (DOW - 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 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, Dow Inc. is sporting a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DOW 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 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.
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.
DOW currently has a forward P/E ratio of 6.49, while AIQUY has a forward P/E of 26.29. We also note that DOW has a PEG ratio of 0.22. 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. AIQUY currently has a PEG ratio of 4.13.
Another notable valuation metric for DOW is its P/B ratio of 2.55. 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, AIQUY has a P/B of 3.33.
Based on these metrics and many more, DOW holds a Value grade of A, while AIQUY has a Value grade of C.
DOW has seen stronger estimate revision activity and sports more attractive valuation metrics than AIQUY, so it seems like value investors will conclude that DOW is the superior option right now.
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DOW vs. AIQUY: Which Stock Is the Better Value Option?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Dow Inc. (DOW - 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 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, Dow Inc. is sporting a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DOW 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 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.
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.
DOW currently has a forward P/E ratio of 6.49, while AIQUY has a forward P/E of 26.29. We also note that DOW has a PEG ratio of 0.22. 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. AIQUY currently has a PEG ratio of 4.13.
Another notable valuation metric for DOW is its P/B ratio of 2.55. 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, AIQUY has a P/B of 3.33.
Based on these metrics and many more, DOW holds a Value grade of A, while AIQUY has a Value grade of C.
DOW has seen stronger estimate revision activity and sports more attractive valuation metrics than AIQUY, so it seems like value investors will conclude that DOW is the superior option right now.