We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DOW vs. RDSMY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Dow Inc. (DOW - Free Report) and Koninklijke DSM NV . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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, Dow Inc. has a Zacks Rank of #1 (Strong Buy), while Koninklijke DSM NV has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DOW has an improving earnings outlook. However, value investors will care about much more than just this.
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 9.19, while RDSMY has a forward P/E of 30.97. We also note that DOW has a PEG ratio of 0.31. 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 2.53.
Another notable valuation metric for DOW is its P/B ratio of 2.53. 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, RDSMY has a P/B of 3.15.
These metrics, and several others, help DOW earn a Value grade of A, while RDSMY has been given a Value grade of D.
DOW sticks out from RDSMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that DOW is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DOW vs. RDSMY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Dow Inc. (DOW - Free Report) and Koninklijke DSM NV . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 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, Dow Inc. has a Zacks Rank of #1 (Strong Buy), while Koninklijke DSM NV has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DOW has an improving earnings outlook. However, value investors will care about much more than just this.
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 9.19, while RDSMY has a forward P/E of 30.97. We also note that DOW has a PEG ratio of 0.31. 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 2.53.
Another notable valuation metric for DOW is its P/B ratio of 2.53. 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, RDSMY has a P/B of 3.15.
These metrics, and several others, help DOW earn a Value grade of A, while RDSMY has been given a Value grade of D.
DOW sticks out from RDSMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that DOW is the better option right now.