Yahoo Finance CHX or ALFVY: Which Is the Better Value Stock Right Now?
Investors interested in Engineering - R and D Services stocks are likely familiar with ChampionX (CHX) and Alfa Laval AB Unsponsored ADR (ALFVY). 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.
Right now, ChampionX is sporting a Zacks Rank of #2 (Buy), while Alfa Laval AB Unsponsored ADR 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 CHX has an improving earnings outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CHX currently has a forward P/E ratio of 19.70, while ALFVY has a forward P/E of 23.86. We also note that CHX has a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALFVY currently has a PEG ratio of 2.77.
Another notable valuation metric for CHX is its P/B ratio of 4.43. 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, ALFVY has a P/B of 4.63.
These metrics, and several others, help CHX earn a Value grade of B, while ALFVY has been given a Value grade of D.
CHX sticks out from ALFVY in both our Zacks Rank and Style Scores models, so value investors will likely feel that CHX is the better option right now.
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ChampionX Corporation (CHX) : Free Stock Analysis Report
Alfa Laval AB Unsponsored ADR (ALFVY) : Free Stock Analysis Report
