Back to top

Image: Bigstock

CC or PPG: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Chemical - Diversified sector might want to consider either Chemours (CC - Free Report) or PPG Industries (PPG - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Chemours and PPG Industries have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CC currently has a forward P/E ratio of 10.96, while PPG has a forward P/E of 20.88. We also note that CC has a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PPG currently has a PEG ratio of 1.14.

Another notable valuation metric for CC is its P/B ratio of 6.64. 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, PPG has a P/B of 6.80.

These metrics, and several others, help CC earn a Value grade of A, while PPG has been given a Value grade of D.

Both CC and PPG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CC is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PPG Industries, Inc. (PPG) - free report >>

The Chemours Company (CC) - free report >>

Published in