Yahoo Finance LOMA or NVR: 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 NVR (NVR). 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Loma Negra Compania Industrial Argentina S.A. Sponsored ADR has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that LOMA likely has seen a stronger improvement to its earnings outlook than NVR has recently. However, value investors will care about much more than just this.
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.
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 4.90, while NVR has a forward P/E of 10.04. We also note that LOMA has a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVR currently has a PEG ratio of 7.78.
Another notable valuation metric for LOMA is its P/B ratio of 1. 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, NVR has a P/B of 4.95.
These metrics, and several others, help LOMA earn a Value grade of A, while NVR has been given a Value grade of C.
LOMA stands above NVR thanks to its solid earnings outlook, and based on these valuation figures, we also 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
NVR, Inc. (NVR) : Free Stock Analysis Report
