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MATV vs. NVZMY: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Chemical - Specialty sector might want to consider either Mativ Holdings (MATV - Free Report) or 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.

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, both Mativ Holdings and Novozymes A/S are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

MATV currently has a forward P/E ratio of 10.87, while NVZMY has a forward P/E of 29.30. We also note that MATV has a PEG ratio of 1.81. 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. NVZMY currently has a PEG ratio of 4.

Another notable valuation metric for MATV is its P/B ratio of 0.93. 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, NVZMY has a P/B of 5.90.

These are just a few of the metrics contributing to MATV's Value grade of A and NVZMY's Value grade of F.

Both MATV and NVZMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MATV is the superior value option right now.


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