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LOMA vs. DHI: Which Stock Should Value Investors Buy Now?
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Investors interested in Building Products - Home Builders stocks are likely familiar with Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA - Free Report) and D.R. Horton (DHI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Loma Negra Compania Industrial Argentina S.A. Sponsored ADR has a Zacks Rank of #2 (Buy), while D.R. Horton has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that LOMA likely has seen a stronger improvement to its earnings outlook than DHI has recently. But this is only part of the picture 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 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.
LOMA currently has a forward P/E ratio of 5.46, while DHI has a forward P/E of 5.94. We also note that LOMA has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DHI currently has a PEG ratio of 0.66.
Another notable valuation metric for LOMA is its P/B ratio of 0.94. 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, DHI has a P/B of 1.38.
Based on these metrics and many more, LOMA holds a Value grade of A, while DHI has a Value grade of D.
LOMA sticks out from DHI in both our Zacks Rank and Style Scores models, so value investors will likely feel that LOMA is the better option right now.
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LOMA vs. DHI: Which Stock Should Value Investors Buy Now?
Investors interested in Building Products - Home Builders stocks are likely familiar with Loma Negra Compania Industrial Argentina S.A. Sponsored ADR (LOMA - Free Report) and D.R. Horton (DHI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Loma Negra Compania Industrial Argentina S.A. Sponsored ADR has a Zacks Rank of #2 (Buy), while D.R. Horton has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that LOMA likely has seen a stronger improvement to its earnings outlook than DHI has recently. But this is only part of the picture 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 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.
LOMA currently has a forward P/E ratio of 5.46, while DHI has a forward P/E of 5.94. We also note that LOMA has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DHI currently has a PEG ratio of 0.66.
Another notable valuation metric for LOMA is its P/B ratio of 0.94. 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, DHI has a P/B of 1.38.
Based on these metrics and many more, LOMA holds a Value grade of A, while DHI has a Value grade of D.
LOMA sticks out from DHI in both our Zacks Rank and Style Scores models, so value investors will likely feel that LOMA is the better option right now.