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.
PPG vs. NVZMY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors with an interest in Chemical - Specialty stocks have likely encountered both PPG Industries (PPG - Free Report) and Novozymes A/S (NVZMY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, PPG Industries is sporting a Zacks Rank of #2 (Buy), while Novozymes A/S has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PPG likely has seen a stronger improvement to its earnings outlook than NVZMY has recently. However, value investors will care about much more than just this.
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.
PPG currently has a forward P/E ratio of 18.92, while NVZMY has a forward P/E of 25.26. We also note that PPG has a PEG ratio of 1.14. 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. NVZMY currently has a PEG ratio of 14.35.
Another notable valuation metric for PPG is its P/B ratio of 4.28. 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, NVZMY has a P/B of 5.15.
These metrics, and several others, help PPG earn a Value grade of A, while NVZMY has been given a Value grade of C.
PPG stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PPG 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
PPG vs. NVZMY: Which Stock Is the Better Value Option?
Investors with an interest in Chemical - Specialty stocks have likely encountered both PPG Industries (PPG - Free Report) and Novozymes A/S (NVZMY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, PPG Industries is sporting a Zacks Rank of #2 (Buy), while Novozymes A/S has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PPG likely has seen a stronger improvement to its earnings outlook than NVZMY has recently. However, value investors will care about much more than just this.
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.
PPG currently has a forward P/E ratio of 18.92, while NVZMY has a forward P/E of 25.26. We also note that PPG has a PEG ratio of 1.14. 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. NVZMY currently has a PEG ratio of 14.35.
Another notable valuation metric for PPG is its P/B ratio of 4.28. 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, NVZMY has a P/B of 5.15.
These metrics, and several others, help PPG earn a Value grade of A, while NVZMY has been given a Value grade of C.
PPG stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PPG is the superior value option right now.