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ICL vs. GVDNY: Which Stock Is the Better Value Option?

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Investors interested in Chemical - Specialty stocks are likely familiar with ICL Group (ICL - Free Report) and Givaudan SA (GVDNY - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

ICL Group and Givaudan SA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ICL is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ICL currently has a forward P/E ratio of 4.87, while GVDNY has a forward P/E of 34.58. We also note that ICL has a PEG ratio of 0.94. 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. GVDNY currently has a PEG ratio of 3.22.

Another notable valuation metric for ICL is its P/B ratio of 2.49. 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, GVDNY has a P/B of 7.31.

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

ICL sticks out from GVDNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that ICL is the better option right now.


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