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TGLS vs. FAST: Which Stock Is the Better Value Option?

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Investors interested in Building Products - Retail stocks are likely familiar with Tecnoglass (TGLS - Free Report) and Fastenal (FAST - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Tecnoglass and Fastenal are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TGLS has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

TGLS currently has a forward P/E ratio of 10.15, while FAST has a forward P/E of 30.74. We also note that TGLS has a PEG ratio of 0.51. 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. FAST currently has a PEG ratio of 3.42.

Another notable valuation metric for TGLS is its P/B ratio of 1.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FAST has a P/B of 9.25.

Based on these metrics and many more, TGLS holds a Value grade of A, while FAST has a Value grade of D.

TGLS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TGLS is likely the superior value option right now.


In-Depth Zacks Research for the Tickers Above


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Tecnoglass Inc. (TGLS) - free report >>

Fastenal Company (FAST) - free report >>

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