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FUPBY vs. RPM: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Chemical - Specialty stocks have likely encountered both FUCHS SE - Unsponsored ADR (FUPBY - Free Report) and RPM International (RPM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, FUCHS SE - Unsponsored ADR has a Zacks Rank of #2 (Buy), while RPM International has a Zacks Rank of #4 (Sell). This means that FUPBY'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.

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.

FUPBY currently has a forward P/E ratio of 17.68, while RPM has a forward P/E of 21.98. We also note that FUPBY has a PEG ratio of 2.04. 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. RPM currently has a PEG ratio of 3.57.

Another notable valuation metric for FUPBY is its P/B ratio of 3.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RPM has a P/B of 5.45.

These are just a few of the metrics contributing to FUPBY's Value grade of B and RPM's Value grade of D.

FUPBY has seen stronger estimate revision activity and sports more attractive valuation metrics than RPM, so it seems like value investors will conclude that FUPBY is the superior option right now.


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