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OLN vs. APD: Which Stock Is the Better Value Option?
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Investors with an interest in Chemical - Diversified stocks have likely encountered both Olin (OLN - Free Report) and Air Products and Chemicals (APD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Olin is sporting a Zacks Rank of #1 (Strong Buy), while Air Products and Chemicals has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OLN likely has seen a stronger improvement to its earnings outlook than APD has recently. But this is only part of the picture 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.
OLN currently has a forward P/E ratio of 6.34, while APD has a forward P/E of 28.72. We also note that OLN has a PEG ratio of 0.11. 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. APD currently has a PEG ratio of 2.71.
Another notable valuation metric for OLN is its P/B ratio of 3.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, APD has a P/B of 4.69.
These metrics, and several others, help OLN earn a Value grade of A, while APD has been given a Value grade of C.
OLN 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 OLN is likely the superior value option right now.
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OLN vs. APD: Which Stock Is the Better Value Option?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Olin (OLN - Free Report) and Air Products and Chemicals (APD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Olin is sporting a Zacks Rank of #1 (Strong Buy), while Air Products and Chemicals has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that OLN likely has seen a stronger improvement to its earnings outlook than APD has recently. But this is only part of the picture 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.
OLN currently has a forward P/E ratio of 6.34, while APD has a forward P/E of 28.72. We also note that OLN has a PEG ratio of 0.11. 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. APD currently has a PEG ratio of 2.71.
Another notable valuation metric for OLN is its P/B ratio of 3.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, APD has a P/B of 4.69.
These metrics, and several others, help OLN earn a Value grade of A, while APD has been given a Value grade of C.
OLN 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 OLN is likely the superior value option right now.