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TPH vs. DFH: Which Stock Is the Better Value Option?
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Investors with an interest in Building Products - Home Builders stocks have likely encountered both Tri Pointe Homes (TPH - Free Report) and Dream Finders Homes Inc. (DFH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Tri Pointe Homes and Dream Finders Homes Inc. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that TPH likely has seen a stronger improvement to its earnings outlook than DFH 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TPH currently has a forward P/E ratio of 6.99, while DFH has a forward P/E of 7.21. We also note that TPH has a PEG ratio of 0.54. 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. DFH currently has a PEG ratio of 0.59.
Another notable valuation metric for TPH is its P/B ratio of 0.88. 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, DFH has a P/B of 2.19.
These metrics, and several others, help TPH earn a Value grade of A, while DFH has been given a Value grade of C.
TPH stands above DFH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TPH is the superior value option right now.
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TPH vs. DFH: Which Stock Is the Better Value Option?
Investors with an interest in Building Products - Home Builders stocks have likely encountered both Tri Pointe Homes (TPH - Free Report) and Dream Finders Homes Inc. (DFH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Tri Pointe Homes and Dream Finders Homes Inc. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that TPH likely has seen a stronger improvement to its earnings outlook than DFH 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TPH currently has a forward P/E ratio of 6.99, while DFH has a forward P/E of 7.21. We also note that TPH has a PEG ratio of 0.54. 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. DFH currently has a PEG ratio of 0.59.
Another notable valuation metric for TPH is its P/B ratio of 0.88. 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, DFH has a P/B of 2.19.
These metrics, and several others, help TPH earn a Value grade of A, while DFH has been given a Value grade of C.
TPH stands above DFH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TPH is the superior value option right now.