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CPAC vs. VMC: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either Pacasmayo (CPAC - Free Report) or Vulcan Materials (VMC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Pacasmayo has a Zacks Rank of #2 (Buy), while Vulcan Materials has a Zacks Rank of #3 (Hold) right now. This means that CPAC'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 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CPAC currently has a forward P/E ratio of 20.59, while VMC has a forward P/E of 29.21. We also note that CPAC has a PEG ratio of 0.72. 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. VMC currently has a PEG ratio of 1.39.

Another notable valuation metric for CPAC is its P/B ratio of 2.13. 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, VMC has a P/B of 3.49.

These metrics, and several others, help CPAC earn a Value grade of B, while VMC has been given a Value grade of D.

CPAC has seen stronger estimate revision activity and sports more attractive valuation metrics than VMC, so it seems like value investors will conclude that CPAC is the superior option right now.


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Vulcan Materials Company (VMC) - free report >>

Cementos Pacasmayo S.A.A. (CPAC) - free report >>