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FUL 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 H. B. Fuller (FUL - Free Report) and Novozymes A/S (NVZMY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

H. B. Fuller and Novozymes A/S are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

FUL currently has a forward P/E ratio of 19.18, while NVZMY has a forward P/E of 37.48. We also note that FUL has a PEG ratio of 1.37. 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. NVZMY currently has a PEG ratio of 3.84.

Another notable valuation metric for FUL is its P/B ratio of 2.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NVZMY has a P/B of 15.58.

These are just a few of the metrics contributing to FUL's Value grade of B and NVZMY's Value grade of F.

Both FUL and NVZMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FUL is the superior value option right now.


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