Back to top

Image: Bigstock

BCC or FND: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Building Products - Wood sector might want to consider either Boise Cascade (BCC - Free Report) or Floor & Decor Holdings, Inc. (FND - Free Report) . 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, Boise Cascade has a Zacks Rank of #1 (Strong Buy), while Floor & Decor Holdings, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BCC likely has seen a stronger improvement to its earnings outlook than FND has recently. 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.

BCC currently has a forward P/E ratio of 12.66, while FND has a forward P/E of 38.55. We also note that BCC has a PEG ratio of 1.42. 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. FND currently has a PEG ratio of 1.54.

Another notable valuation metric for BCC is its P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FND has a P/B of 6.66.

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

BCC stands above FND thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCC is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

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