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FUL vs. NVZMY: Which Stock Is the Better Value Option?

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Investors interested in Chemical - Specialty stocks are likely familiar with H. B. Fuller (FUL - Free Report) and Novozymes A/S (NVZMY - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

H. B. Fuller and Novozymes A/S are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUL has an improving earnings outlook. 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 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.

FUL currently has a forward P/E ratio of 12.15, while NVZMY has a forward P/E of 26.93. We also note that FUL has a PEG ratio of 0.64. 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. NVZMY currently has a PEG ratio of 3.06.

Another notable valuation metric for FUL is its P/B ratio of 1.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NVZMY has a P/B of 2.12.

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

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

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