We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
LTHM vs. LIN: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Livent and Linde (LIN - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Livent has a Zacks Rank of #1 (Strong Buy), while Linde has a Zacks Rank of #3 (Hold) right now. This means that LTHM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.
LTHM currently has a forward P/E ratio of 10, while LIN has a forward P/E of 26.87. We also note that LTHM has a PEG ratio of 0.29. 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. LIN currently has a PEG ratio of 2.57.
Another notable valuation metric for LTHM is its P/B ratio of 2.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LIN has a P/B of 4.47.
These are just a few of the metrics contributing to LTHM's Value grade of B and LIN's Value grade of C.
LTHM stands above LIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LTHM 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
LTHM vs. LIN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Livent and Linde (LIN - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Livent has a Zacks Rank of #1 (Strong Buy), while Linde has a Zacks Rank of #3 (Hold) right now. This means that LTHM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.
LTHM currently has a forward P/E ratio of 10, while LIN has a forward P/E of 26.87. We also note that LTHM has a PEG ratio of 0.29. 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. LIN currently has a PEG ratio of 2.57.
Another notable valuation metric for LTHM is its P/B ratio of 2.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LIN has a P/B of 4.47.
These are just a few of the metrics contributing to LTHM's Value grade of B and LIN's Value grade of C.
LTHM stands above LIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LTHM is the superior value option right now.