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

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Investors interested in Building Products - Concrete and Aggregates stocks are likely familiar with Cemex (CX - Free Report) and 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Cemex has a Zacks Rank of #2 (Buy), while Martin Marietta has a Zacks Rank of #3 (Hold) right now. This means that CX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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.

CX currently has a forward P/E ratio of 6.28, while MLM has a forward P/E of 23.48. We also note that CX has a PEG ratio of 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MLM currently has a PEG ratio of 1.39.

Another notable valuation metric for CX is its P/B ratio of 0.55. 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.

These are just a few of the metrics contributing to CX's Value grade of A and MLM's Value grade of C.

CX 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 CX is likely 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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