Top 5 Value Stocks: Church & Dwight

UGI (UGI) engages in the distribution and marketing of energy products and services in the U.S. and internationally. The company also operates a heating, ventilation, air conditioning and refrigeration business serving customers in the Mid-Atlantic region.

The numbers: Fiscal second-quarter revenue dropped 9.5% to $2.1 billion as net income increased 25% to $158 million and earnings per share improved 24% to $1.45, continuing a trend of positive growth for eight consecutive quarters. A quick ratio of 0.9 indicates a less-than-ideal liquidity position and a debt-to-equity ratio of 1.5 reflects sizable leverage. Operating margin improved to 17% and net margin moved past 7%.

The stock: UGI has climbed 6% in 2009, outperforming the Dow and S&P 500. Still, the stock trades at a price-to-earnings ratio under 10, indicating a significant discount to the market, and offers a 3.1% dividend yield.

Diamond Foods (DMND) processes and markets culinary, snack, in-shell and ingredient nuts that are sold through two main product lines: Diamond of California and Emerald Nuts.

The numbers: Fiscal third-quarter revenue ascended 11% to $111 million as net income increased 144% to $2.7 million and earnings per share improved 128% to 16 cents, establishing an eight-quarter streak. Operating margin increased to 6% and net margin exceeded 2%. Just $1.5 million of cash and a quick ratio of 0.3 indicate weak liquidity. But a debt-to-equity ratio of 0.7 means conservative leverage.

The stock: Diamond has climbed 25% in 2009, outperforming all major U.S. indexes. The stock trades at a price-to-earnings ratio around 19 and has a dividend yield under 1%.

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