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

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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Akzo Nobel NV (AKZOY - Free Report) or Air Liquide (AIQUY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Akzo Nobel NV is sporting a Zacks Rank of #1 (Strong Buy), while Air Liquide has a Zacks Rank of #3 (Hold). 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 piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

AKZOY currently has a forward P/E ratio of 18.64, while AIQUY has a forward P/E of 27.01. We also note that AKZOY has a PEG ratio of 0.67. 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. AIQUY currently has a PEG ratio of 3.25.

Another notable valuation metric for AKZOY is its P/B ratio of 2.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AIQUY has a P/B of 3.61.

Based on these metrics and many more, AKZOY holds a Value grade of B, while AIQUY has a Value grade of C.

AKZOY sticks out from AIQUY in both our Zacks Rank and Style Scores models, so value investors will likely feel that AKZOY is the better option right now.


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