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

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Investors interested in Chemical - Diversified stocks are likely familiar with Cabot (CBT - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Cabot has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #4 (Sell). This means that CBT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 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.

CBT currently has a forward P/E ratio of 11.77, while AIQUY has a forward P/E of 25.57. We also note that CBT has a PEG ratio of 2.39. 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 2.91.

Another notable valuation metric for CBT is its P/B ratio of 3.08. 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, AIQUY has a P/B of 3.72.

Based on these metrics and many more, CBT holds a Value grade of A, while AIQUY has a Value grade of F.

CBT stands above AIQUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CBT is the superior value option right now.


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