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JMPLY or FMC: Which Is the Better Value Stock Right Now?

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Investors interested in Chemical - Diversified stocks are likely familiar with Johnson Matthey PLC (JMPLY - Free Report) and FMC (FMC - 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.

Right now, Johnson Matthey PLC is sporting a Zacks Rank of #2 (Buy), while FMC has a Zacks Rank of #4 (Sell). 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 just one piece of the puzzle 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JMPLY currently has a forward P/E ratio of 9.23, while FMC has a forward P/E of 18.60. We also note that JMPLY has a PEG ratio of 0.48. 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. FMC currently has a PEG ratio of 1.57.

Another notable valuation metric for JMPLY is its P/B ratio of 1.22. 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, FMC has a P/B of 1.68.

These metrics, and several others, help JMPLY earn a Value grade of A, while FMC has been given a Value grade of C.

JMPLY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JMPLY is likely the superior value option right now.


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