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MATV or NVZMY: Which Is the Better Value Stock Right Now?

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Investors interested in Chemical - Specialty stocks are likely familiar with Mativ Holdings (MATV - Free Report) and 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Mativ Holdings and Novozymes A/S have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle 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.

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 12.50, while NVZMY has a forward P/E of 30.50. We also note that MATV has a PEG ratio of 2.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVZMY currently has a PEG ratio of 4.01.

Another notable valuation metric for MATV is its P/B ratio of 1.07. 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, NVZMY has a P/B of 13.23.

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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