Investors interested in stocks from the Chemical - Specialty sector have probably already heard of Symrise AG Unsponsored ADR (SYIEY) and Linde (LIN). 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 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, Symrise AG Unsponsored ADR has a Zacks Rank of #1 (Strong Buy), while Linde has a Zacks Rank of #3 (Hold). This means that SYIEY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.
SYIEY currently has a forward P/E ratio of 20.16, while LIN has a forward P/E of 27.35. We also note that SYIEY has a PEG ratio of 1.35. 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. LIN currently has a PEG ratio of 2.97.
Another notable valuation metric for SYIEY is its P/B ratio of 3.07. 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, LIN has a P/B of 5.28.
Based on these metrics and many more, SYIEY holds a Value grade of B, while LIN has a Value grade of D.
SYIEY 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 SYIEY is likely the superior value option right now.
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Symrise AG Unsponsored ADR (SYIEY): Free Stock Analysis Report Linde PLC (LIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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