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DD vs. AIQUY: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Chemical - Diversified sector have probably already heard of DuPont de Nemours (DD - Free Report) and Air Liquide (AIQUY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

DuPont de Nemours and Air Liquide are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

DD currently has a forward P/E ratio of 21.02, while AIQUY has a forward P/E of 24.32. We also note that DD has a PEG ratio of 1.97. 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 2.33.

Another notable valuation metric for DD is its P/B ratio of 1.38. 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, AIQUY has a P/B of 3.22.

These are just a few of the metrics contributing to DD's Value grade of B and AIQUY's Value grade of D.

Both DD and AIQUY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DD is the superior value option right now.


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DuPont de Nemours, Inc. (DD) - free report >>

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