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LYB vs. AKZOY: Which Stock Is the Better Value Option?

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Investors with an interest in Chemical - Diversified stocks have likely encountered both LyondellBasell (LYB - Free Report) and Akzo Nobel NV (AKZOY - 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.

Right now, LyondellBasell is sporting a Zacks Rank of #1 (Strong Buy), while Akzo Nobel 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 LYB has an improving earnings outlook. 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.

LYB currently has a forward P/E ratio of 5.04, while AKZOY has a forward P/E of 22.78. We also note that LYB has a PEG ratio of 0.63. 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. AKZOY currently has a PEG ratio of 1.48.

Another notable valuation metric for LYB is its P/B ratio of 3.18. 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, AKZOY has a P/B of 3.25.

These are just a few of the metrics contributing to LYB's Value grade of A and AKZOY's Value grade of C.

LYB 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 LYB is likely the superior value option right now.


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LyondellBasell Industries N.V. (LYB) - free report >>

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