Investors looking for stocks in the Chemical - Specialty sector might want to consider either Symrise AG Unsponsored ADR (SYIEY) or 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.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Symrise AG Unsponsored ADR has a Zacks Rank of #2 (Buy), while Hawkins has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SYIEY has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
SYIEY currently has a forward P/E ratio of 15.82, while HWKN has a forward P/E of 37.14. We also note that SYIEY has a PEG ratio of 1.06. 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. HWKN currently has a PEG ratio of 2.32.
Another notable valuation metric for SYIEY is its P/B ratio of 2.63. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HWKN has a P/B of 6.18.
These metrics, and several others, help SYIEY earn a Value grade of B, while HWKN has been given a Value grade of C.
SYIEY has seen stronger estimate revision activity and sports more attractive valuation metrics than HWKN, so it seems like value investors will conclude that SYIEY is the superior 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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