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AXTA or NVZMY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Axalta Coating Systems (AXTA - Free Report) and Novozymes A/S (NVZMY - 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 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.
Axalta Coating Systems and Novozymes A/S are sporting Zacks Ranks of #1 (Strong 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 AXTA 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 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.
AXTA currently has a forward P/E ratio of 20.65, while NVZMY has a forward P/E of 29.98. We also note that AXTA has a PEG ratio of 1.65. 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. NVZMY currently has a PEG ratio of 10.44.
Another notable valuation metric for AXTA is its P/B ratio of 4.35. 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, NVZMY has a P/B of 5.46.
Based on these metrics and many more, AXTA holds a Value grade of B, while NVZMY has a Value grade of C.
AXTA stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.
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AXTA or NVZMY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Axalta Coating Systems (AXTA - Free Report) and Novozymes A/S (NVZMY - 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 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.
Axalta Coating Systems and Novozymes A/S are sporting Zacks Ranks of #1 (Strong 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 AXTA 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 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.
AXTA currently has a forward P/E ratio of 20.65, while NVZMY has a forward P/E of 29.98. We also note that AXTA has a PEG ratio of 1.65. 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. NVZMY currently has a PEG ratio of 10.44.
Another notable valuation metric for AXTA is its P/B ratio of 4.35. 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, NVZMY has a P/B of 5.46.
Based on these metrics and many more, AXTA holds a Value grade of B, while NVZMY has a Value grade of C.
AXTA stands above NVZMY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AXTA is the superior value option right now.