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UNVR vs. FMC: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Chemical - Diversified sector might want to consider either Univar or FMC (FMC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Univar and FMC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that UNVR likely has seen a stronger improvement to its earnings outlook than FMC has recently. But this is just one piece of the puzzle 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 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 7.54, while FMC has a forward P/E of 14.57. We also note that UNVR has a PEG ratio of 0.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FMC currently has a PEG ratio of 1.46.
Another notable valuation metric for UNVR is its P/B ratio of 1.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FMC has a P/B of 4.37.
These metrics, and several others, help UNVR earn a Value grade of A, while FMC has been given a Value grade of C.
UNVR sticks out from FMC in both our Zacks Rank and Style Scores models, so value investors will likely feel that UNVR is the better option right now.
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UNVR vs. FMC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Chemical - Diversified sector might want to consider either Univar or FMC (FMC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Univar and FMC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that UNVR likely has seen a stronger improvement to its earnings outlook than FMC has recently. But this is just one piece of the puzzle 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 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 7.54, while FMC has a forward P/E of 14.57. We also note that UNVR has a PEG ratio of 0.52. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FMC currently has a PEG ratio of 1.46.
Another notable valuation metric for UNVR is its P/B ratio of 1.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FMC has a P/B of 4.37.
These metrics, and several others, help UNVR earn a Value grade of A, while FMC has been given a Value grade of C.
UNVR sticks out from FMC in both our Zacks Rank and Style Scores models, so value investors will likely feel that UNVR is the better option right now.