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

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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 is more attractive to value investors? We'll need to take a closer look to find out.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Johnson Matthey PLC has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #3 (Hold) 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. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

JMPLY currently has a forward P/E ratio of 12.53, while AIQUY has a forward P/E of 29.57. We also note that JMPLY has a PEG ratio of 1.99. 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 2.65.

Another notable valuation metric for JMPLY is its P/B ratio of 1.30. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AIQUY has a P/B of 4.23.

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

JMPLY has seen stronger estimate revision activity and sports more attractive valuation metrics than AIQUY, so it seems like value investors will conclude that JMPLY is the superior option right now.


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