Investors interested in Chemical - Diversified stocks are likely familiar with Univar and Koninklijke DSM NV . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Univar is sporting a Zacks Rank of #1 (Strong Buy), while Koninklijke DSM NV has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that UNVR likely has seen a stronger improvement to its earnings outlook than RDSMY has recently. 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.
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.
UNVR currently has a forward P/E ratio of 12.40, while RDSMY has a forward P/E of 28.24. We also note that UNVR has a PEG ratio of 0.96. 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. RDSMY currently has a PEG ratio of 2.31.
Another notable valuation metric for UNVR is its P/B ratio of 2.44. 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, RDSMY has a P/B of 3.09.
These metrics, and several others, help UNVR earn a Value grade of B, while RDSMY has been given a Value grade of C.
UNVR sticks out from RDSMY 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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UNVR vs. RDSMY: Which Stock Should Value Investors Buy Now?
Investors interested in Chemical - Diversified stocks are likely familiar with Univar and Koninklijke DSM NV . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Univar is sporting a Zacks Rank of #1 (Strong Buy), while Koninklijke DSM NV has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that UNVR likely has seen a stronger improvement to its earnings outlook than RDSMY has recently. 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.
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.
UNVR currently has a forward P/E ratio of 12.40, while RDSMY has a forward P/E of 28.24. We also note that UNVR has a PEG ratio of 0.96. 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. RDSMY currently has a PEG ratio of 2.31.
Another notable valuation metric for UNVR is its P/B ratio of 2.44. 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, RDSMY has a P/B of 3.09.
These metrics, and several others, help UNVR earn a Value grade of B, while RDSMY has been given a Value grade of C.
UNVR sticks out from RDSMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that UNVR is the better option right now.