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AFI vs. RYN: Which Stock Should Value Investors Buy Now?
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Investors interested in Building Products - Wood stocks are likely familiar with Armstrong Flooring and Rayonier (RYN - 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.
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.
Right now, Armstrong Flooring is sporting a Zacks Rank of #1 (Strong Buy), while Rayonier has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AFI has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AFI currently has a forward P/E ratio of 44.67, while RYN has a forward P/E of 50.32. We also note that AFI has a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RYN currently has a PEG ratio of 10.06.
Another notable valuation metric for AFI is its P/B ratio of 0.89. 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, RYN has a P/B of 2.61.
These metrics, and several others, help AFI earn a Value grade of B, while RYN has been given a Value grade of D.
AFI stands above RYN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AFI is the superior value option right now.
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AFI vs. RYN: Which Stock Should Value Investors Buy Now?
Investors interested in Building Products - Wood stocks are likely familiar with Armstrong Flooring and Rayonier (RYN - 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.
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.
Right now, Armstrong Flooring is sporting a Zacks Rank of #1 (Strong Buy), while Rayonier has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AFI has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AFI currently has a forward P/E ratio of 44.67, while RYN has a forward P/E of 50.32. We also note that AFI has a PEG ratio of 2.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. RYN currently has a PEG ratio of 10.06.
Another notable valuation metric for AFI is its P/B ratio of 0.89. 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, RYN has a P/B of 2.61.
These metrics, and several others, help AFI earn a Value grade of B, while RYN has been given a Value grade of D.
AFI stands above RYN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AFI is the superior value option right now.