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AXTA vs. GVDNY: Which Stock Should Value Investors Buy Now?
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Investors interested in Chemical - Specialty stocks are likely familiar with Axalta Coating Systems (AXTA - Free Report) and Givaudan SA (GVDNY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Axalta Coating Systems is sporting a Zacks Rank of #2 (Buy), while Givaudan SA has a Zacks Rank of #3 (Hold). This means that AXTA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
AXTA currently has a forward P/E ratio of 13.70, while GVDNY has a forward P/E of 35.06. We also note that AXTA has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GVDNY currently has a PEG ratio of 2.41.
Another notable valuation metric for AXTA is its P/B ratio of 3.80. 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, GVDNY has a P/B of 7.38.
These metrics, and several others, help AXTA earn a Value grade of B, while GVDNY has been given a Value grade of C.
AXTA stands above GVDNY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.
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AXTA vs. GVDNY: Which Stock Should Value Investors Buy Now?
Investors interested in Chemical - Specialty stocks are likely familiar with Axalta Coating Systems (AXTA - Free Report) and Givaudan SA (GVDNY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Axalta Coating Systems is sporting a Zacks Rank of #2 (Buy), while Givaudan SA has a Zacks Rank of #3 (Hold). This means that AXTA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
AXTA currently has a forward P/E ratio of 13.70, while GVDNY has a forward P/E of 35.06. We also note that AXTA has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GVDNY currently has a PEG ratio of 2.41.
Another notable valuation metric for AXTA is its P/B ratio of 3.80. 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, GVDNY has a P/B of 7.38.
These metrics, and several others, help AXTA earn a Value grade of B, while GVDNY has been given a Value grade of C.
AXTA stands above GVDNY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.