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

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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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Boise Cascade and Floor Decor Holdings, Inc. are both sporting a Zacks Rank of # 1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle 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.

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 14.19, while FND has a forward P/E of 63.10. We also note that BCC has a PEG ratio of 1.59. 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. FND currently has a PEG ratio of 2.75.

Another notable valuation metric for BCC is its P/B ratio of 2.51. 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, FND has a P/B of 8.83.

These are just a few of the metrics contributing to BCC's Value grade of A and FND's Value grade of F.

Both BCC and FND are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BCC is the superior value option right now.


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

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

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