Yahoo Finance CBT vs. AIQUY: Which Stock Should Value Investors Buy Now?
Investors with an interest in Chemical - Diversified stocks have likely encountered both Cabot (CBT) and Air Liquide (AIQUY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, Cabot is sporting a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CBT is likely seeing its earnings outlook improve to a greater extent. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CBT currently has a forward P/E ratio of 14.07, while AIQUY has a forward P/E of 27.91. We also note that CBT has a PEG ratio of 0.95. 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. AIQUY currently has a PEG ratio of 2.66.
Another notable valuation metric for CBT is its P/B ratio of 3.51. 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, AIQUY has a P/B of 3.74.
These metrics, and several others, help CBT earn a Value grade of B, while AIQUY has been given a Value grade of D.
CBT stands above AIQUY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CBT is the superior value option right now.
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Cabot Corporation (CBT) : Free Stock Analysis Report
Air Liquide (AIQUY) : Free Stock Analysis Report
