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SYIEY vs. GVDNY: Which Stock Is the Better Value Option?

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Investors with an interest in Chemical - Specialty stocks have likely encountered both Symrise AG Unsponsored ADR (SYIEY - Free Report) and Givaudan SA (GVDNY - 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.

Right now, Symrise AG Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while Givaudan SA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SYIEY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

SYIEY currently has a forward P/E ratio of 15.84, while GVDNY has a forward P/E of 23.73. We also note that SYIEY has a PEG ratio of 1.06. 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. GVDNY currently has a PEG ratio of 4.09.

Another notable valuation metric for SYIEY is its P/B ratio of 2.63. 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, GVDNY has a P/B of 7.24.

These metrics, and several others, help SYIEY earn a Value grade of B, while GVDNY has been given a Value grade of D.

SYIEY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SYIEY is likely the superior value option right now.


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Symrise AG Unsponsored ADR (SYIEY) - free report >>

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