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BASFY vs. RDSMY: Which Stock Is the Better Value Option?
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Investors interested in Chemical - Diversified stocks are likely familiar with BASF SE (BASFY - Free Report) and Koninklijke DSM NV . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, BASF SE is sporting a Zacks Rank of #2 (Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BASFY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BASFY currently has a forward P/E ratio of 16.25, while RDSMY has a forward P/E of 28.95. We also note that BASFY has a PEG ratio of 1.62. 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. RDSMY currently has a PEG ratio of 1.95.
Another notable valuation metric for BASFY is its P/B ratio of 1.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RDSMY has a P/B of 3.61.
Based on these metrics and many more, BASFY holds a Value grade of B, while RDSMY has a Value grade of C.
BASFY stands above RDSMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BASFY is the superior value option right now.
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BASFY vs. RDSMY: Which Stock Is the Better Value Option?
Investors interested in Chemical - Diversified stocks are likely familiar with BASF SE (BASFY - Free Report) and Koninklijke DSM NV . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, BASF SE is sporting a Zacks Rank of #2 (Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BASFY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
BASFY currently has a forward P/E ratio of 16.25, while RDSMY has a forward P/E of 28.95. We also note that BASFY has a PEG ratio of 1.62. 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. RDSMY currently has a PEG ratio of 1.95.
Another notable valuation metric for BASFY is its P/B ratio of 1.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RDSMY has a P/B of 3.61.
Based on these metrics and many more, BASFY holds a Value grade of B, while RDSMY has a Value grade of C.
BASFY stands above RDSMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BASFY is the superior value option right now.