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NHYDY or SKFRY: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Metal Products - Procurement and Fabrication sector might want to consider either Norsk Hydro ASA (NHYDY) or AB SKF (SKFRY). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Norsk Hydro ASA and AB SKF are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that NHYDY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

NHYDY currently has a forward P/E ratio of 12.06, while SKFRY has a forward P/E of 13.34. We also note that NHYDY has a PEG ratio of 0.53. 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. SKFRY currently has a PEG ratio of 1.03.

Another notable valuation metric for NHYDY is its P/B ratio of 1.80. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SKFRY has a P/B of 2.44.

These are just a few of the metrics contributing to NHYDY's Value grade of A and SKFRY's Value grade of C.

NHYDY sticks out from SKFRY in both our Zacks Rank and Style Scores models, so value investors will likely feel that NHYDY is the better option right now.


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Norsk Hydro ASA (NHYDY) : Free Stock Analysis Report
 
AB SKF (SKFRY) : Free Stock Analysis Report
 
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