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CBT 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 Cabot (CBT - Free Report) 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.

Cabot has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that CBT likely has seen a stronger improvement to its earnings outlook than AIQUY has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CBT currently has a forward P/E ratio of 14.56, while AIQUY has a forward P/E of 27.69. We also note that CBT has a PEG ratio of 0.98. 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. AIQUY currently has a PEG ratio of 2.64.

Another notable valuation metric for CBT is its P/B ratio of 3.63. 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, AIQUY has a P/B of 3.84.

These are just a few of the metrics contributing to CBT's Value grade of B and AIQUY's Value grade of D.

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


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