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.
CHX vs. ALTR: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either ChampionX (CHX - Free Report) or Altair Engineering (ALTR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
ChampionX and Altair Engineering are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CHX currently has a forward P/E ratio of 23.41, while ALTR has a forward P/E of 62.52. We also note that CHX has a PEG ratio of 0.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALTR currently has a PEG ratio of 5.21.
Another notable valuation metric for CHX is its P/B ratio of 3.38. 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, ALTR has a P/B of 6.80.
Based on these metrics and many more, CHX holds a Value grade of B, while ALTR has a Value grade of F.
Both CHX and ALTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CHX is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CHX vs. ALTR: Which Stock Is the Better Value Option?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either ChampionX (CHX - Free Report) or Altair Engineering (ALTR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
ChampionX and Altair Engineering are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CHX currently has a forward P/E ratio of 23.41, while ALTR has a forward P/E of 62.52. We also note that CHX has a PEG ratio of 0.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALTR currently has a PEG ratio of 5.21.
Another notable valuation metric for CHX is its P/B ratio of 3.38. 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, ALTR has a P/B of 6.80.
Based on these metrics and many more, CHX holds a Value grade of B, while ALTR has a Value grade of F.
Both CHX and ALTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CHX is the superior value option right now.