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AKZOY or AIQUY: Which Is the Better Value Stock Right Now?

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Investors interested in Chemical - Diversified stocks are likely familiar with Akzo Nobel NV (AKZOY - Free Report) and Air Liquide (AIQUY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Akzo Nobel NV and Air Liquide are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AKZOY likely has seen a stronger improvement to its earnings outlook than AIQUY has recently. But this is just one factor that value investors are interested in.

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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

AKZOY currently has a forward P/E ratio of 19.73, while AIQUY has a forward P/E of 26.61. We also note that AKZOY has a PEG ratio of 0.70. 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. AIQUY currently has a PEG ratio of 2.85.

Another notable valuation metric for AKZOY is its P/B ratio of 3.09. 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, AIQUY has a P/B of 3.61.

These metrics, and several others, help AKZOY earn a Value grade of B, while AIQUY has been given a Value grade of C.

AKZOY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AKZOY is likely the superior value option right now.


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