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URI vs. JHX: Which Stock Is the Better Value Option?
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Investors interested in Building Products - Miscellaneous stocks are likely familiar with United Rentals (URI - Free Report) and James Hardie (JHX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, United Rentals has a Zacks Rank of #2 (Buy), while James Hardie has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that URI likely has seen a stronger improvement to its earnings outlook than JHX has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
URI currently has a forward P/E ratio of 11.50, while JHX has a forward P/E of 15.48. We also note that URI has a PEG ratio of 0.70. 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. JHX currently has a PEG ratio of 5.51.
Another notable valuation metric for URI is its P/B ratio of 4.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, JHX has a P/B of 5.96.
Based on these metrics and many more, URI holds a Value grade of A, while JHX has a Value grade of D.
URI stands above JHX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URI is the superior value option right now.
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URI vs. JHX: Which Stock Is the Better Value Option?
Investors interested in Building Products - Miscellaneous stocks are likely familiar with United Rentals (URI - Free Report) and James Hardie (JHX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, United Rentals has a Zacks Rank of #2 (Buy), while James Hardie has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that URI likely has seen a stronger improvement to its earnings outlook than JHX has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
URI currently has a forward P/E ratio of 11.50, while JHX has a forward P/E of 15.48. We also note that URI has a PEG ratio of 0.70. 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. JHX currently has a PEG ratio of 5.51.
Another notable valuation metric for URI is its P/B ratio of 4.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, JHX has a P/B of 5.96.
Based on these metrics and many more, URI holds a Value grade of A, while JHX has a Value grade of D.
URI stands above JHX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that URI is the superior value option right now.