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AXTA vs. CSWI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Chemical - Specialty sector might want to consider either Axalta Coating Systems (AXTA - Free Report) or CSW Industrials (CSWI - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Axalta Coating Systems has a Zacks Rank of #2 (Buy), while CSW Industrials 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 AXTA has an improving earnings outlook. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AXTA currently has a forward P/E ratio of 17.33, while CSWI has a forward P/E of 29.32. We also note that AXTA has a PEG ratio of 1.06. 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. CSWI currently has a PEG ratio of 1.95.
Another notable valuation metric for AXTA is its P/B ratio of 4.07. 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, CSWI has a P/B of 6.28.
These metrics, and several others, help AXTA earn a Value grade of B, while CSWI has been given a Value grade of D.
AXTA has seen stronger estimate revision activity and sports more attractive valuation metrics than CSWI, so it seems like value investors will conclude that AXTA is the superior option right now.
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AXTA vs. CSWI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Chemical - Specialty sector might want to consider either Axalta Coating Systems (AXTA - Free Report) or CSW Industrials (CSWI - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Axalta Coating Systems has a Zacks Rank of #2 (Buy), while CSW Industrials 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 AXTA has an improving earnings outlook. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AXTA currently has a forward P/E ratio of 17.33, while CSWI has a forward P/E of 29.32. We also note that AXTA has a PEG ratio of 1.06. 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. CSWI currently has a PEG ratio of 1.95.
Another notable valuation metric for AXTA is its P/B ratio of 4.07. 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, CSWI has a P/B of 6.28.
These metrics, and several others, help AXTA earn a Value grade of B, while CSWI has been given a Value grade of D.
AXTA has seen stronger estimate revision activity and sports more attractive valuation metrics than CSWI, so it seems like value investors will conclude that AXTA is the superior option right now.