Yahoo Finance 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 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Axalta Coating Systems and Novozymes A/S are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
AXTA currently has a forward P/E ratio of 20.08, while NVZMY has a forward P/E of 26.42. We also note that AXTA has a PEG ratio of 1.58. 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 8.33.
Another notable valuation metric for AXTA is its P/B ratio of 4.19. 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, NVZMY has a P/B of 6.16.
Based on these metrics and many more, AXTA holds a Value grade of B, while NVZMY has a Value grade of D.
Both AXTA and NVZMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AXTA is the superior value option right now.
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Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Novozymes A/S (NVZMY) : Free Stock Analysis Report
