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WLKP or KWR: Which Is the Better Value Stock Right Now?
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Investors interested in Chemical - Specialty stocks are likely familiar with Westlake Chemical Partners (WLKP - Free Report) and Quaker Chemical (KWR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Westlake Chemical Partners has a Zacks Rank of #1 (Strong Buy), while Quaker Chemical has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WLKP has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
WLKP currently has a forward P/E ratio of 7.78, while KWR has a forward P/E of 19.28. We also note that WLKP has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KWR currently has a PEG ratio of 1.41.
Another notable valuation metric for WLKP is its P/B ratio of 0.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KWR has a P/B of 1.76.
These metrics, and several others, help WLKP earn a Value grade of A, while KWR has been given a Value grade of C.
WLKP stands above KWR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WLKP is the superior value option right now.
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WLKP or KWR: Which Is the Better Value Stock Right Now?
Investors interested in Chemical - Specialty stocks are likely familiar with Westlake Chemical Partners (WLKP - Free Report) and Quaker Chemical (KWR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Westlake Chemical Partners has a Zacks Rank of #1 (Strong Buy), while Quaker Chemical has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WLKP has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
WLKP currently has a forward P/E ratio of 7.78, while KWR has a forward P/E of 19.28. We also note that WLKP has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KWR currently has a PEG ratio of 1.41.
Another notable valuation metric for WLKP is its P/B ratio of 0.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KWR has a P/B of 1.76.
These metrics, and several others, help WLKP earn a Value grade of A, while KWR has been given a Value grade of C.
WLKP stands above KWR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that WLKP is the superior value option right now.