Yahoo Finance HDELY vs. VMC: Which Stock Is the Better Value Option?
Investors interested in Building Products - Concrete and Aggregates stocks are likely familiar with HeidelbergCement AG (HDELY) and Vulcan Materials (VMC). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, HeidelbergCement AG has a Zacks Rank of #1 (Strong Buy), while Vulcan Materials has a Zacks Rank of #3 (Hold). This means that HDELY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HDELY currently has a forward P/E ratio of 8.11, while VMC has a forward P/E of 29.02. We also note that HDELY has a PEG ratio of 1.21. 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. VMC currently has a PEG ratio of 1.89.
Another notable valuation metric for HDELY is its P/B ratio of 0.80. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VMC has a P/B of 3.28.
Based on these metrics and many more, HDELY holds a Value grade of A, while VMC has a Value grade of C.
HDELY sticks out from VMC in both our Zacks Rank and Style Scores models, so value investors will likely feel that HDELY is the better option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HeidelbergCement AG (HDELY) : Free Stock Analysis Report
Vulcan Materials Company (VMC) : Free Stock Analysis Report
