Investors with an interest in Chemical - Specialty stocks have likely encountered both Westlake Chemical Partners (WLKP) and H. B. Fuller (FUL). But which of these two stocks presents investors with the better value opportunity right now? Let's 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, Westlake Chemical Partners has a Zacks Rank of #1 (Strong Buy), while H. B. Fuller has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WLKP 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.
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.
WLKP currently has a forward P/E ratio of 11.60, while FUL has a forward P/E of 13.98. We also note that WLKP has a PEG ratio of 0.72. 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. FUL currently has a PEG ratio of 1.16.
Another notable valuation metric for WLKP is its P/B ratio of 0.81. 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, FUL has a P/B of 1.99.
These metrics, and several others, help WLKP earn a Value grade of A, while FUL has been given a Value grade of C.
WLKP has seen stronger estimate revision activity and sports more attractive valuation metrics than FUL, so it seems like value investors will conclude that WLKP is the superior option right now.
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Westlake Chemical Partners LP (WLKP) : Free Stock Analysis Report
H. B. Fuller Company (FUL) : Free Stock Analysis Report
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