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DOW vs. PPG: Which Stock Is the Better Value Option?
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Investors interested in Chemical - Diversified stocks are likely familiar with Dow Inc. (DOW - Free Report) and PPG Industries (PPG - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Dow Inc. and PPG Industries are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that DOW likely has seen a stronger improvement to its earnings outlook than PPG has recently. 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.
DOW currently has a forward P/E ratio of 11.40, while PPG has a forward P/E of 22.24. We also note that DOW has a PEG ratio of 0.41. 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. PPG currently has a PEG ratio of 1.21.
Another notable valuation metric for DOW is its P/B ratio of 3.51. 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, PPG has a P/B of 7.14.
These metrics, and several others, help DOW earn a Value grade of B, while PPG has been given a Value grade of D.
DOW stands above PPG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOW is the superior value option right now.
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DOW vs. PPG: Which Stock Is the Better Value Option?
Investors interested in Chemical - Diversified stocks are likely familiar with Dow Inc. (DOW - Free Report) and PPG Industries (PPG - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Dow Inc. and PPG Industries are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that DOW likely has seen a stronger improvement to its earnings outlook than PPG has recently. 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.
DOW currently has a forward P/E ratio of 11.40, while PPG has a forward P/E of 22.24. We also note that DOW has a PEG ratio of 0.41. 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. PPG currently has a PEG ratio of 1.21.
Another notable valuation metric for DOW is its P/B ratio of 3.51. 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, PPG has a P/B of 7.14.
These metrics, and several others, help DOW earn a Value grade of B, while PPG has been given a Value grade of D.
DOW stands above PPG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOW is the superior value option right now.