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PPG or NVZMY: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Chemical - Specialty sector might want to consider either PPG Industries (PPG) or Novozymes A/S (NVZMY). 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.

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.

Right now, both PPG Industries and Novozymes A/S are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

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Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PPG currently has a forward P/E ratio of 19.62, while NVZMY has a forward P/E of 27.42. We also note that PPG has a PEG ratio of 1.08. 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. NVZMY currently has a PEG ratio of 8.65.

Another notable valuation metric for PPG is its P/B ratio of 4.92. 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, NVZMY has a P/B of 6.41.

These are just a few of the metrics contributing to PPG's Value grade of B and NVZMY's Value grade of D.

Both PPG and NVZMY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PPG is the superior value option right now.

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PPG Industries, Inc. (PPG) : Free Stock Analysis Report

Novozymes A/S (NVZMY) : Free Stock Analysis Report

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Zacks Investment Research