## Norsk Hydro ASA (NHYDY) vs. Northwest Pipe Co. (NWPX): Which Stock Offers Better Value?
For investors scouring the Metal Products – Procurement and Fabrication sector for value opportunities, two names stand out: Norsk Hydro ASA (NHYDY) and Northwest Pipe Co. (NWPX). But which of these contenders presents the more compelling value proposition? Let’s dive into a comparative analysis.
Our approach combines the robust Zacks Rank with the insightful Value category of our Style Scores system. This proven methodology has consistently unearthed value stocks delivering impressive returns. The Zacks Rank prioritizes companies exhibiting positive earnings estimate revisions, while our Style Scores spotlight stocks with specific desirable traits.
Currently, Norsk Hydro ASA boasts a Zacks Rank of #2 (Buy), while Northwest Pipe Co. holds a Zacks Rank of #3 (Hold). This indicates a more favorable earnings outlook for NHYDY, as the Zacks Rank favors stocks experiencing recent upward revisions to their earnings estimates.
However, value investing demands a holistic approach. We meticulously analyze a suite of traditional, time-tested metrics to identify companies undervalued at their present share price levels. The Style Score Value grade integrates key fundamental metrics, such as the widely recognized P/E ratio, P/S ratio, earnings yield, cash flow per share, and other crucial stats frequently employed by value investors.
Examining these metrics, NHYDY currently exhibits a forward P/E ratio of 10.48, compared to NWPX’s forward P/E of 15.17. Furthermore, NHYDY boasts a PEG ratio of 0.20. This metric, akin to the P/E ratio, incorporates the stock’s anticipated earnings growth rate. In contrast, NWPX’s PEG ratio sits at 3.03.
Another noteworthy valuation metric for NHYDY is its P/B ratio of 1.17. This ratio juxtaposes a stock’s market value against its book value, which is calculated as total assets minus total liabilities. In comparison, NWPX carries a P/B of 1.27.
Considering these metrics and numerous others, NHYDY earns a Value grade of A, while NWPX receives a Value grade of C. NHYDY outshines NWPX not only with its robust earnings outlook but also with a more favorable valuation profile, solidifying its position as the superior value choice at this juncture.
