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

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Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Johnson Matthey PLC (JMPLY - Free Report) and Air Liquide (AIQUY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Johnson Matthey PLC has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #5 (Strong Sell). This means that JMPLY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 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.

JMPLY currently has a forward P/E ratio of 11.68, while AIQUY has a forward P/E of 28.26. We also note that JMPLY has a PEG ratio of 2.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AIQUY currently has a PEG ratio of 3.27.

Another notable valuation metric for JMPLY is its P/B ratio of 1.5. 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, AIQUY has a P/B of 3.96.

These are just a few of the metrics contributing to JMPLY's Value grade of A and AIQUY's Value grade of F.

JMPLY stands above AIQUY 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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