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AXTA vs. HWKN: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Axalta Coating Systems (AXTA - Free Report) and Hawkins (HWKN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Axalta Coating Systems has a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that AXTA likely has seen a stronger improvement to its earnings outlook than HWKN has recently. 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.
AXTA currently has a forward P/E ratio of 12.61, while HWKN has a forward P/E of 32.18. We also note that AXTA has a PEG ratio of 1.53. 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. HWKN currently has a PEG ratio of 2.68.
Another notable valuation metric for AXTA is its P/B ratio of 2.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HWKN has a P/B of 4.99.
These metrics, and several others, help AXTA earn a Value grade of B, while HWKN has been given 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.
Image: Bigstock
AXTA vs. HWKN: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Axalta Coating Systems (AXTA - Free Report) and Hawkins (HWKN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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, Axalta Coating Systems has a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that AXTA likely has seen a stronger improvement to its earnings outlook than HWKN has recently. 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.
AXTA currently has a forward P/E ratio of 12.61, while HWKN has a forward P/E of 32.18. We also note that AXTA has a PEG ratio of 1.53. 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. HWKN currently has a PEG ratio of 2.68.
Another notable valuation metric for AXTA is its P/B ratio of 2.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HWKN has a P/B of 4.99.
These metrics, and several others, help AXTA earn a Value grade of B, while HWKN has been given 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.