Yahoo Finance LOMA or DHI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) or D.R. Horton (DHI). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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.
Both Loma Negra Compania Industrial Argentina S.A. Sponsored ADR and D.R. Horton have a Zacks Rank of # 1 (Strong Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
LOMA currently has a forward P/E ratio of 5.33, while DHI has a forward P/E of 9.56. We also note that LOMA has a PEG ratio of 0.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DHI currently has a PEG ratio of 0.62.
Another notable valuation metric for LOMA is its P/B ratio of 0.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DHI has a P/B of 1.73.
These are just a few of the metrics contributing to LOMA's Value grade of A and DHI's Value grade of C.
Both LOMA and DHI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LOMA is the superior value option right now.
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Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA) : Free Stock Analysis Report
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
