Yahoo Finance ARKAY vs. AKZOY: Which Stock Is the Better Value Option?
Investors interested in Chemical - Diversified stocks are likely familiar with Arkema SA (ARKAY) 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Arkema SA has a Zacks Rank of #2 (Buy), while Akzo Nobel NV has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ARKAY likely has seen a stronger improvement to its earnings outlook than AKZOY has recently. But this is only part of the picture 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.
ARKAY currently has a forward P/E ratio of 11.73, while AKZOY has a forward P/E of 19.54. We also note that ARKAY has a PEG ratio of 3.63. 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. AKZOY currently has a PEG ratio of 5.43.
Another notable valuation metric for ARKAY is its P/B ratio of 0.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AKZOY has a P/B of 2.45.
These are just a few of the metrics contributing to ARKAY's Value grade of A and AKZOY's Value grade of C.
ARKAY 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 ARKAY is likely the superior value option right now.
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Arkema SA (ARKAY) : Free Stock Analysis Report
Akzo Nobel NV (AKZOY) : Free Stock Analysis Report
