AKZOY vs. AIQUY: Which Stock Is the Better Value Option?

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Investors interested in Chemical - Diversified stocks are likely familiar with Akzo Nobel NV (AKZOY) and Air Liquide (AIQUY). 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.

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.

Currently, Akzo Nobel NV has a Zacks Rank of #1 (Strong Buy), while Air Liquide has a Zacks Rank of #3 (Hold). This means that AKZOY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 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.

AKZOY currently has a forward P/E ratio of 17.20, while AIQUY has a forward P/E of 26.54. We also note that AKZOY has a PEG ratio of 0.62. 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. AIQUY currently has a PEG ratio of 3.19.

Another notable valuation metric for AKZOY is its P/B ratio of 2.64. 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, AIQUY has a P/B of 3.55.

These metrics, and several others, help AKZOY earn a Value grade of B, while AIQUY has been given a Value grade of C.

AKZOY stands above AIQUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AKZOY is the superior value option right now.

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