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BASFY or RDSMY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Chemical - Diversified sector have probably already heard of BASF SE (BASFY - Free Report) and Koninklijke DSM NV . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, BASF SE has a Zacks Rank of #2 (Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BASFY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
BASFY currently has a forward P/E ratio of 12.49, while RDSMY has a forward P/E of 31.55. We also note that BASFY has a PEG ratio of 0.93. 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. RDSMY currently has a PEG ratio of 2.37.
Another notable valuation metric for BASFY is its P/B ratio of 1.58. 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, RDSMY has a P/B of 3.95.
These metrics, and several others, help BASFY earn a Value grade of B, while RDSMY has been given a Value grade of C.
BASFY 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 BASFY is likely the superior value option right now.
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BASFY or RDSMY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Chemical - Diversified sector have probably already heard of BASF SE (BASFY - Free Report) and Koninklijke DSM NV . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, BASF SE has a Zacks Rank of #2 (Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BASFY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
BASFY currently has a forward P/E ratio of 12.49, while RDSMY has a forward P/E of 31.55. We also note that BASFY has a PEG ratio of 0.93. 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. RDSMY currently has a PEG ratio of 2.37.
Another notable valuation metric for BASFY is its P/B ratio of 1.58. 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, RDSMY has a P/B of 3.95.
These metrics, and several others, help BASFY earn a Value grade of B, while RDSMY has been given a Value grade of C.
BASFY 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 BASFY is likely the superior value option right now.