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PQG or COIHY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Chemical - Specialty sector have probably already heard of PQ Group and Croda International PLC Unsponsored ADR (COIHY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, PQ Group has a Zacks Rank of #1 (Strong Buy), while Croda International PLC Unsponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PQG likely has seen a stronger improvement to its earnings outlook than COIHY has recently. But this is only part of the picture for value investors.

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.

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.

PQG currently has a forward P/E ratio of 17.32, while COIHY has a forward P/E of 26.08. We also note that PQG has a PEG ratio of 1.08. 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. COIHY currently has a PEG ratio of 2.17.

Another notable valuation metric for PQG is its P/B ratio of 1.19. 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, COIHY has a P/B of 7.68.

These metrics, and several others, help PQG earn a Value grade of B, while COIHY has been given a Value grade of D.

PQG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PQG is likely the superior value option right now.


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