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UNVR vs. AKZOY: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Chemical - Diversified stocks have likely encountered both Univar and 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Univar has a Zacks Rank of #2 (Buy), while Akzo Nobel NV has a Zacks Rank of #5 (Strong Sell). This means that UNVR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

UNVR currently has a forward P/E ratio of 15.78, while AKZOY has a forward P/E of 24.77. We also note that UNVR has a PEG ratio of 1.22. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AKZOY currently has a PEG ratio of 1.63.

Another notable valuation metric for UNVR is its P/B ratio of 2.31. 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, AKZOY has a P/B of 3.28.

These metrics, and several others, help UNVR earn a Value grade of B, while AKZOY has been given a Value grade of D.

UNVR sticks out from AKZOY in both our Zacks Rank and Style Scores models, so value investors will likely feel that UNVR is the better option right now.


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