Back to top

Image: Bigstock

JMPLY vs. AIQUY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Johnson Matthey PLC (JMPLY - 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.

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 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.

Johnson Matthey PLC has a Zacks Rank of #1 (Strong Buy), while Air Liquide has a Zacks Rank of #4 (Sell) right now. This means that JMPLY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

JMPLY currently has a forward P/E ratio of 11.73, while AIQUY has a forward P/E of 25.30. We also note that JMPLY has a PEG ratio of 2.20. 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 2.88.

Another notable valuation metric for JMPLY is its P/B ratio of 1.20. 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 3.68.

These metrics, and several others, help JMPLY earn a Value grade of B, while AIQUY has been given a Value grade of F.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Air Liquide (AIQUY) - free report >>

Johnson Matthey PLC (JMPLY) - free report >>

Published in