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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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

Mativ Holdings and Novozymes A/S are both sporting a Zacks Rank of # 2 (Buy) right now. 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 11.62, while NVZMY has a forward P/E of 28.27. We also note that MATV has a PEG ratio of 1.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NVZMY currently has a PEG ratio of 3.71.

Another notable valuation metric for MATV is its P/B ratio of 1. 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, NVZMY has a P/B of 12.26.

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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