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CE or NGVT: 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 Celanese (CE - Free Report) and Ingevity Corporation (NGVT - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Celanese has a Zacks Rank of #2 (Buy), while Ingevity Corporation has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CE likely has seen a stronger improvement to its earnings outlook than NGVT has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CE currently has a forward P/E ratio of 9.03, while NGVT has a forward P/E of 24.33. We also note that CE has a PEG ratio of 0.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NGVT currently has a PEG ratio of 2.03.
Another notable valuation metric for CE is its P/B ratio of 3.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NGVT has a P/B of 12.19.
Based on these metrics and many more, CE holds a Value grade of B, while NGVT has a Value grade of D.
CE stands above NGVT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CE is the superior value option right now.
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CE or NGVT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Celanese (CE - Free Report) and Ingevity Corporation (NGVT - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Celanese has a Zacks Rank of #2 (Buy), while Ingevity Corporation has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CE likely has seen a stronger improvement to its earnings outlook than NGVT has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
CE currently has a forward P/E ratio of 9.03, while NGVT has a forward P/E of 24.33. We also note that CE has a PEG ratio of 0.90. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NGVT currently has a PEG ratio of 2.03.
Another notable valuation metric for CE is its P/B ratio of 3.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NGVT has a P/B of 12.19.
Based on these metrics and many more, CE holds a Value grade of B, while NGVT has a Value grade of D.
CE stands above NGVT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CE is the superior value option right now.