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JMPLY vs. APD: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Johnson Matthey PLC (JMPLY - Free Report) or Air Products and Chemicals (APD - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Johnson Matthey PLC has a Zacks Rank of #1 (Strong Buy), while Air Products and Chemicals has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JMPLY has an improving earnings outlook. 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.

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 13.08, while APD has a forward P/E of 20.33. We also note that JMPLY has a PEG ratio of 2.93. 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. APD currently has a PEG ratio of 5.45.

Another notable valuation metric for JMPLY is its P/B ratio of 1.59. 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, APD has a P/B of 3.29.

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

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


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