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FUPBY vs. RPM: Which Stock Is the Better Value Option?

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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 presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both FUCHS SE - Unsponsored ADR and RPM International have a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

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.

FUPBY currently has a forward P/E ratio of 17.59, while RPM has a forward P/E of 19.45. We also note that FUPBY has a PEG ratio of 2.03. 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. RPM currently has a PEG ratio of 2.91.

Another notable valuation metric for FUPBY is its P/B ratio of 3.24. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RPM has a P/B of 5.31.

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

Both FUPBY and RPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FUPBY is the superior value option right now.


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