UNVR or AKZOY: Which Is the Better Value Stock Right Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Univar (UNVR) and Akzo Nobel NV (AKZOY). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Univar is sporting a Zacks Rank of #2 (Buy), while Akzo Nobel NV has a Zacks Rank of #3 (Hold). This means that UNVR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
UNVR currently has a forward P/E ratio of 14.13, while AKZOY has a forward P/E of 23.36. We also note that UNVR has a PEG ratio of 1.01. 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. AKZOY currently has a PEG ratio of 1.54.
Another notable valuation metric for UNVR is its P/B ratio of 2.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AKZOY has a P/B of 3.35.
These metrics, and several others, help UNVR earn a Value grade of B, while AKZOY has been given a Value grade of C.
UNVR stands above AKZOY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UNVR 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
Univar Solutions Inc. (UNVR) : Free Stock Analysis Report
Akzo Nobel NV (AKZOY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
