ESI vs. HWKN: Which Stock Is the Better Value Option?

Core Viewpoint - Element Solutions (ESI) is currently positioned as a more attractive investment option compared to Hawkins (HWKN) based on various valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - ESI has a forward P/E ratio of 16.98, significantly lower than HWKN's forward P/E of 36.02, indicating that ESI may be undervalued [5]. - The PEG ratio for ESI is 1.75, while HWKN's PEG ratio stands at 2.63, suggesting that ESI offers better value relative to its expected earnings growth [5]. - ESI's P/B ratio is 2.32 compared to HWKN's P/B of 7.16, further highlighting ESI's relative undervaluation [6]. Earnings Outlook - ESI is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - ESI holds a Zacks Rank of 2 (Buy), while HWKN has a Zacks Rank of 3 (Hold), indicating a stronger earnings improvement for ESI [3]. Value Grades - ESI has a Value grade of B, whereas HWKN has a Value grade of D, reflecting ESI's superior valuation metrics [6].