DD vs. AIQUY: Which Stock Is the Better Value Option?

Zacks
01 Jan

Investors with an interest in Chemical - Diversified stocks have likely encountered both DuPont de Nemours (DD) and Air Liquide (AIQUY). 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

DuPont de Nemours has a Zacks Rank of #2 (Buy), while Air Liquide has a Zacks Rank of #3 (Hold) right now. This means that DD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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 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.

DD currently has a forward P/E ratio of 19.41, while AIQUY has a forward P/E of 24.02. We also note that DD has a PEG ratio of 1.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AIQUY currently has a PEG ratio of 2.21.

Another notable valuation metric for DD is its P/B ratio of 1.29. 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 3.11.

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

DD has seen stronger estimate revision activity and sports more attractive valuation metrics than AIQUY, so it seems like value investors will conclude that DD is the superior option right now.

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DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report

Air Liquide (AIQUY) : Free Stock Analysis Report

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