- Oops!Something went wrong.Please try again later.
Investors looking for stocks in the Chemical - Diversified sector might want to consider either Univar (UNVR) or Avient (AVNT). 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Univar has a Zacks Rank of #2 (Buy), while Avient has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that UNVR likely has seen a stronger improvement to its earnings outlook than AVNT has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 14.45, while AVNT has a forward P/E of 19.94. We also note that UNVR has a PEG ratio of 1.12. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AVNT currently has a PEG ratio of 1.99.
Another notable valuation metric for UNVR is its P/B ratio of 2.22. 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, AVNT has a P/B of 3.08.
Based on these metrics and many more, UNVR holds a Value grade of B, while AVNT has a Value grade of C.
UNVR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that UNVR is likely 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
Avient Corporation (AVNT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research