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BCC vs. FND: Which Stock Is the Better Value Option?

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Investors with an interest in Building Products - Wood stocks have likely encountered both Boise Cascade (BCC - Free Report) and Floor & Decor Holdings, Inc. (FND - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Boise Cascade has a Zacks Rank of #1 (Strong Buy), while Floor & Decor Holdings, Inc. has a Zacks Rank of #3 (Hold). This means that BCC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

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.

BCC currently has a forward P/E ratio of 13.67, while FND has a forward P/E of 54.72. We also note that BCC has a PEG ratio of 1.78. 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. FND currently has a PEG ratio of 2.08.

Another notable valuation metric for BCC is its P/B ratio of 2.51. 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, FND has a P/B of 10.83.

Based on these metrics and many more, BCC holds a Value grade of B, while FND has a Value grade of D.

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


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Boise Cascade, L.L.C. (BCC) - free report >>

Floor & Decor Holdings, Inc. (FND) - free report >>