AXTA vs. HWKN: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Axalta Coating Systems (AXTA) is currently viewed as a better value opportunity compared to Hawkins (HWKN) based on Zacks Rank and various valuation metrics [1][3][6] Group 1: Zacks Rank and Earnings Estimates - Axalta Coating Systems has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Hawkins has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that AXTA's earnings outlook is improving more significantly than HWKN's [3] Group 2: Valuation Metrics - AXTA has a forward P/E ratio of 13.70, significantly lower than HWKN's forward P/E of 26.53, indicating that AXTA may be undervalued [5] - The PEG ratio for AXTA is 0.89, while HWKN's PEG ratio is 3.79, further suggesting that AXTA is a more attractive investment based on expected earnings growth [5] - AXTA's P/B ratio is 3.83 compared to HWKN's P/B of 4.85, reinforcing the notion that AXTA is relatively undervalued [6] - Based on these metrics, AXTA holds a Value grade of B, while HWKN has a Value grade of D, indicating a stronger value proposition for AXTA [6]