Investors with an interest in Chemical - Specialty stocks have likely encountered both Symrise AG Unsponsored ADR (SYIEY) and Hawkins (HWKN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Symrise AG Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that SYIEY likely has seen a stronger improvement to its earnings outlook than HWKN has recently. 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.
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 17.76, while HWKN has a forward P/E of 31.81. We also note that SYIEY has a PEG ratio of 1.19. 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 1.99.
Another notable valuation metric for SYIEY is its P/B ratio of 2.69. 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, HWKN has a P/B of 5.23.
These are just a few of the metrics contributing to SYIEY's Value grade of B and HWKN's 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 Hawkins, Inc. (HWKN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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