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BASFY vs. AVNT: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both BASF SE (BASFY - Free Report) and Avient (AVNT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both BASF SE and Avient are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BASFY currently has a forward P/E ratio of 10.48, while AVNT has a forward P/E of 15.76. We also note that BASFY has a PEG ratio of 0.70. 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. AVNT currently has a PEG ratio of 1.58.
Another notable valuation metric for BASFY is its P/B ratio of 1.52. 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, AVNT has a P/B of 2.44.
These metrics, and several others, help BASFY earn a Value grade of B, while AVNT has been given a Value grade of C.
Both BASFY and AVNT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BASFY is the superior value option right now.
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BASFY vs. AVNT: Which Stock Should Value Investors Buy Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both BASF SE (BASFY - Free Report) and Avient (AVNT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both BASF SE and Avient are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BASFY currently has a forward P/E ratio of 10.48, while AVNT has a forward P/E of 15.76. We also note that BASFY has a PEG ratio of 0.70. 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. AVNT currently has a PEG ratio of 1.58.
Another notable valuation metric for BASFY is its P/B ratio of 1.52. 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, AVNT has a P/B of 2.44.
These metrics, and several others, help BASFY earn a Value grade of B, while AVNT has been given a Value grade of C.
Both BASFY and AVNT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BASFY is the superior value option right now.