U.S. markets open in 8 hours 54 minutes
  • S&P Futures

    3,839.25
    +12.00 (+0.31%)
     
  • Dow Futures

    31,134.00
    +73.00 (+0.24%)
     
  • Nasdaq Futures

    11,664.75
    +53.50 (+0.46%)
     
  • Russell 2000 Futures

    1,731.80
    +3.30 (+0.19%)
     
  • Crude Oil

    110.31
    +1.88 (+1.73%)
     
  • Gold

    1,811.90
    +10.40 (+0.58%)
     
  • Silver

    20.05
    +0.38 (+1.92%)
     
  • EUR/USD

    1.0437
    +0.0013 (+0.13%)
     
  • 10-Yr Bond

    2.8890
    0.0000 (0.00%)
     
  • Vix

    27.53
    -1.18 (-4.11%)
     
  • GBP/USD

    1.2110
    +0.0006 (+0.05%)
     
  • USD/JPY

    136.2830
    +0.6230 (+0.46%)
     
  • BTC-USD

    20,220.13
    +1,108.83 (+5.80%)
     
  • CMC Crypto 200

    438.92
    +18.78 (+4.47%)
     
  • FTSE 100

    7,232.65
    +64.00 (+0.89%)
     
  • Nikkei 225

    26,328.39
    +174.58 (+0.67%)
     

AXTA or DSEY: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors looking for stocks in the Chemical - Specialty sector might want to consider either Axalta Coating Systems (AXTA) or Diversey Holdings, Ltd. (DSEY). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Axalta Coating Systems and Diversey Holdings, Ltd. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

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.

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.

AXTA currently has a forward P/E ratio of 14.76, while DSEY has a forward P/E of 29.93. We also note that AXTA has a PEG ratio of 0.66. 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. DSEY currently has a PEG ratio of 2.11.

Another notable valuation metric for AXTA is its P/B ratio of 5.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, DSEY has a P/B of 8.83.

These metrics, and several others, help AXTA earn a Value grade of B, while DSEY has been given a Value grade of D.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
 
Diversey Holdings, Ltd. (DSEY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.