Investors with an interest in Chemical - Specialty stocks have likely encountered both FUCHS SE - Unsponsored ADR (FUPBY) and Hawkins (HWKN). 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, FUCHS SE - Unsponsored ADR has a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that FUPBY likely has seen a stronger improvement to its earnings outlook than HWKN has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
FUPBY currently has a forward P/E ratio of 16.92, while HWKN has a forward P/E of 36.97. We also note that FUPBY has a PEG ratio of 1.95. 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. HWKN currently has a PEG ratio of 2.70.
Another notable valuation metric for FUPBY is its P/B ratio of 3.12. 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, HWKN has a P/B of 6.84.
These are just a few of the metrics contributing to FUPBY's Value grade of B and HWKN's Value grade of D.
FUPBY has seen stronger estimate revision activity and sports more attractive valuation metrics than HWKN, so it seems like value investors will conclude that FUPBY is the superior option right now.
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FUCHS SE - Unsponsored ADR (FUPBY): Free Stock Analysis Report Hawkins, Inc. (HWKN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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