AXTA or NVZMY: Which Is the Better Value Stock Right Now?
Investors with an interest in Chemical - Specialty stocks have likely encountered both Axalta Coating Systems (AXTA) and Novozymes A/S (NVZMY). 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.
Right now, Axalta Coating Systems is sporting a Zacks Rank of #2 (Buy), while Novozymes A/S has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AXTA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
AXTA currently has a forward P/E ratio of 21.72, while NVZMY has a forward P/E of 28.26. We also note that AXTA has a PEG ratio of 2.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVZMY currently has a PEG ratio of 11.35.
Another notable valuation metric for AXTA is its P/B ratio of 4.58. 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, NVZMY has a P/B of 6.05.
These are just a few of the metrics contributing to AXTA's Value grade of B and NVZMY's Value grade of F.
AXTA sticks out from NVZMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that AXTA is the better option right now.
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Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Novozymes A/S (NVZMY) : Free Stock Analysis Report
