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CE vs. NGVT: Which Stock Is the Better Value Option?
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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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Celanese and Ingevity Corporation have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CE currently has a forward P/E ratio of 8.08, while NGVT has a forward P/E of 22.50. We also note that CE has a PEG ratio of 0.81. 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. NGVT currently has a PEG ratio of 1.87.
Another notable valuation metric for CE is its P/B ratio of 3.04. 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 11.27.
These are just a few of the metrics contributing to CE's Value grade of B and NGVT's Value grade of D.
Both CE and NGVT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CE is the superior value option right now.
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CE vs. NGVT: Which Stock Is the Better Value Option?
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 companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Celanese and Ingevity Corporation have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CE currently has a forward P/E ratio of 8.08, while NGVT has a forward P/E of 22.50. We also note that CE has a PEG ratio of 0.81. 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. NGVT currently has a PEG ratio of 1.87.
Another notable valuation metric for CE is its P/B ratio of 3.04. 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 11.27.
These are just a few of the metrics contributing to CE's Value grade of B and NGVT's Value grade of D.
Both CE and NGVT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CE is the superior value option right now.