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CE vs. VSM: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Chemical - Specialty sector might want to consider either Celanese (CE - Free Report) or Versum Materials . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Celanese has a Zacks Rank of #2 (Buy), while Versum Materials has a Zacks Rank of #4 (Sell). This means that CE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 8.47, while VSM has a forward P/E of 11.46. We also note that CE has a PEG ratio of 0.85. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VSM currently has a PEG ratio of 0.88.
Another notable valuation metric for CE is its P/B ratio of 3.20. 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, VSM has a P/B of 20.09.
Based on these metrics and many more, CE holds a Value grade of A, while VSM has a Value grade of C.
CE has seen stronger estimate revision activity and sports more attractive valuation metrics than VSM, so it seems like value investors will conclude that CE is the superior option right now.
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CE vs. VSM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Chemical - Specialty sector might want to consider either Celanese (CE - Free Report) or Versum Materials . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Celanese has a Zacks Rank of #2 (Buy), while Versum Materials has a Zacks Rank of #4 (Sell). This means that CE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 8.47, while VSM has a forward P/E of 11.46. We also note that CE has a PEG ratio of 0.85. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VSM currently has a PEG ratio of 0.88.
Another notable valuation metric for CE is its P/B ratio of 3.20. 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, VSM has a P/B of 20.09.
Based on these metrics and many more, CE holds a Value grade of A, while VSM has a Value grade of C.
CE has seen stronger estimate revision activity and sports more attractive valuation metrics than VSM, so it seems like value investors will conclude that CE is the superior option right now.