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ARKAY vs. AVNT: Which Stock Is the Better Value Option?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Arkema SA (ARKAY - Free Report) and Avient (AVNT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Arkema SA has a Zacks Rank of #2 (Buy), while Avient has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARKAY has an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
ARKAY currently has a forward P/E ratio of 10.44, while AVNT has a forward P/E of 15.23. We also note that ARKAY has a PEG ratio of 3.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVNT currently has a PEG ratio of 6.65.
Another notable valuation metric for ARKAY is its P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AVNT has a P/B of 1.53.
These are just a few of the metrics contributing to ARKAY's Value grade of A and AVNT's Value grade of C.
ARKAY stands above AVNT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARKAY is the superior value option right now.
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ARKAY vs. AVNT: Which Stock Is the Better Value Option?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Arkema SA (ARKAY - Free Report) and Avient (AVNT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Arkema SA has a Zacks Rank of #2 (Buy), while Avient has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARKAY has an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
ARKAY currently has a forward P/E ratio of 10.44, while AVNT has a forward P/E of 15.23. We also note that ARKAY has a PEG ratio of 3.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVNT currently has a PEG ratio of 6.65.
Another notable valuation metric for ARKAY is its P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AVNT has a P/B of 1.53.
These are just a few of the metrics contributing to ARKAY's Value grade of A and AVNT's Value grade of C.
ARKAY stands above AVNT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARKAY is the superior value option right now.