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AXTA or HWKN: Which Is the Better Value Stock Right Now?
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Investors interested in Chemical - Specialty stocks are likely familiar with Axalta Coating Systems (AXTA - Free Report) and Hawkins (HWKN - 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.
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.
Right now, Axalta Coating Systems is sporting a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #4 (Sell). This means that AXTA'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
AXTA currently has a forward P/E ratio of 12.42, while HWKN has a forward P/E of 31.38. We also note that AXTA has a PEG ratio of 1.51. 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. HWKN currently has a PEG ratio of 2.62.
Another notable valuation metric for AXTA is its P/B ratio of 2.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HWKN has a P/B of 4.87.
Based on these metrics and many more, AXTA holds a Value grade of B, while HWKN has a Value grade of D.
AXTA sticks out from HWKN in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXTA is the better option right now.
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AXTA or HWKN: Which Is the Better Value Stock Right Now?
Investors interested in Chemical - Specialty stocks are likely familiar with Axalta Coating Systems (AXTA - Free Report) and Hawkins (HWKN - 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.
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.
Right now, Axalta Coating Systems is sporting a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #4 (Sell). This means that AXTA'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
AXTA currently has a forward P/E ratio of 12.42, while HWKN has a forward P/E of 31.38. We also note that AXTA has a PEG ratio of 1.51. 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. HWKN currently has a PEG ratio of 2.62.
Another notable valuation metric for AXTA is its P/B ratio of 2.72. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HWKN has a P/B of 4.87.
Based on these metrics and many more, AXTA holds a Value grade of B, while HWKN has a Value grade of D.
AXTA sticks out from HWKN in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXTA is the better option right now.