Investors interested in stocks from the Chemical - Diversified sector have probably already heard of Huntsman (HUN) and Koninklijke DSM NV (RDSMY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Huntsman has a Zacks Rank of #2 (Buy), while Koninklijke DSM NV has a Zacks Rank of #3 (Hold) right now. This means that HUN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

HUN currently has a forward P/E ratio of 11.10, while RDSMY has a forward P/E of 30.33. We also note that HUN has a PEG ratio of 0.21. 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. RDSMY currently has a PEG ratio of 2.28.

Another notable valuation metric for HUN is its P/B ratio of 1.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RDSMY has a P/B of 3.80.

These are just a few of the metrics contributing to HUN's Value grade of B and RDSMY's Value grade of C.

HUN sticks out from RDSMY in both our Zacks Rank and Style Scores models, so value investors will likely feel that HUN is the better option right now.

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