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DOW or RDSMY: Which Is the Better Value Stock Right Now?
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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 stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Dow Inc. and Koninklijke DSM NV are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DOW is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
DOW currently has a forward P/E ratio of 9.18, while RDSMY has a forward P/E of 29.77. We also note that DOW has a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RDSMY currently has a PEG ratio of 2.77.
Another notable valuation metric for DOW is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDSMY has a P/B of 2.95.
These are just a few of the metrics contributing to DOW's Value grade of A and RDSMY's 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.
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DOW or RDSMY: Which Is the Better Value Stock Right Now?
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 stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Dow Inc. and Koninklijke DSM NV are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DOW is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
DOW currently has a forward P/E ratio of 9.18, while RDSMY has a forward P/E of 29.77. We also note that DOW has a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RDSMY currently has a PEG ratio of 2.77.
Another notable valuation metric for DOW is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDSMY has a P/B of 2.95.
These are just a few of the metrics contributing to DOW's Value grade of A and RDSMY's 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.