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Celanese Corporation (CE) - free report >>
Nissan Chemical Corporation Unsponsored ADR (NNCHY) - free report >>
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Celanese Corporation (CE) - free report >>
Nissan Chemical Corporation Unsponsored ADR (NNCHY) - free report >>
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CE vs. NNCHY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Chemical - Diversified sector might want to consider either Celanese (CE - Free Report) or Nissan Chemical Industries, Ltd. (NNCHY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Celanese has a Zacks Rank of #1 (Strong Buy), while Nissan Chemical Industries, Ltd. 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 CE is likely seeing its earnings outlook improve to a greater extent. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CE currently has a forward P/E ratio of 10.73, while NNCHY has a forward P/E of 26.07. We also note that CE has a PEG ratio of 1.07. 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. NNCHY currently has a PEG ratio of 2.09.
Another notable valuation metric for CE is its P/B ratio of 4.04. 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, NNCHY has a P/B of 4.93.
These are just a few of the metrics contributing to CE's Value grade of B and NNCHY's Value grade of F.
CE sticks out from NNCHY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CE is the better option right now.