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AKZOY or AIQUY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Akzo Nobel NV (AKZOY - Free Report) or Air Liquide (AIQUY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Akzo Nobel NV has a Zacks Rank of #1 (Strong Buy), while Air Liquide has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AKZOY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

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.

AKZOY currently has a forward P/E ratio of 13.62, while AIQUY has a forward P/E of 28.73. We also note that AKZOY has a PEG ratio of 0.74. 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 1.98.

Another notable valuation metric for AKZOY is its P/B ratio of 2.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AIQUY has a P/B of 4.02.

Based on these metrics and many more, AKZOY holds a Value grade of B, while AIQUY has a Value grade of D.

AKZOY stands above AIQUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AKZOY is the superior value option right now.


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