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UNVR or AIQUY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Chemical - Diversified stocks have likely encountered both Univar and Air Liquide (AIQUY - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Univar has a Zacks Rank of #1 (Strong Buy), while Air Liquide has a Zacks Rank of #3 (Hold) right now. This means that UNVR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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.

UNVR currently has a forward P/E ratio of 12.12, while AIQUY has a forward P/E of 26.10. We also note that UNVR has a PEG ratio of 0.84. 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. AIQUY currently has a PEG ratio of 2.25.

Another notable valuation metric for UNVR is its P/B ratio of 2.38. 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, AIQUY has a P/B of 3.25.

Based on these metrics and many more, UNVR holds a Value grade of B, while AIQUY has a Value grade of C.

UNVR 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 UNVR is likely the superior value option right now.


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