雅虎香港財經 HCMLY or AWI: Which Is the Better Value Stock Right Now?
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Holcim Ltd Unsponsored ADR (HCMLY) and Armstrong World Industries (AWI). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Holcim Ltd Unsponsored ADR and Armstrong World Industries are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
HCMLY currently has a forward P/E ratio of 13.39, while AWI has a forward P/E of 19.45. We also note that HCMLY has a PEG ratio of 1.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AWI currently has a PEG ratio of 1.73.
Another notable valuation metric for HCMLY is its P/B ratio of 1.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AWI has a P/B of 8.
Based on these metrics and many more, HCMLY holds a Value grade of B, while AWI has a Value grade of C.
Both HCMLY and AWI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HCMLY is the superior value option right now.
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Holcim Ltd Unsponsored ADR (HCMLY) : Free Stock Analysis Report
Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report
