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KWR vs. HWKN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Quaker Chemical (KWR - Free Report) and Hawkins (HWKN - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Quaker Chemical and Hawkins are holding a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 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.
KWR currently has a forward P/E ratio of 18.18, while HWKN has a forward P/E of 41.40. We also note that KWR has a PEG ratio of 1.46. 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. HWKN currently has a PEG ratio of 2.59.
Another notable valuation metric for KWR is its P/B ratio of 1.7. 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, HWKN has a P/B of 7.87.
Based on these metrics and many more, KWR holds a Value grade of B, while HWKN has a Value grade of D.
Both KWR and HWKN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KWR is the superior value option right now.
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KWR vs. HWKN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Quaker Chemical (KWR - Free Report) and Hawkins (HWKN - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Quaker Chemical and Hawkins are holding a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 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.
KWR currently has a forward P/E ratio of 18.18, while HWKN has a forward P/E of 41.40. We also note that KWR has a PEG ratio of 1.46. 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. HWKN currently has a PEG ratio of 2.59.
Another notable valuation metric for KWR is its P/B ratio of 1.7. 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, HWKN has a P/B of 7.87.
Based on these metrics and many more, KWR holds a Value grade of B, while HWKN has a Value grade of D.
Both KWR and HWKN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KWR is the superior value option right now.