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CX or MLM: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either Cemex (CX - Free Report) or Martin Marietta (MLM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Cemex and Martin Marietta are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CX has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

CX currently has a forward P/E ratio of 7.92, while MLM has a forward P/E of 26.29. We also note that CX has a PEG ratio of 0.81. 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. MLM currently has a PEG ratio of 1.96.

Another notable valuation metric for CX is its P/B ratio of 0.77. 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, MLM has a P/B of 3.52.

Based on these metrics and many more, CX holds a Value grade of A, while MLM has a Value grade of C.

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


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Cemex S.A.B. de C.V. (CX) - free report >>

Martin Marietta Materials, Inc. (MLM) - free report >>

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