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PHM 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 PulteGroup (PHM - Free Report) and Dream Finders Homes Inc. (DFH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Currently, PulteGroup has a Zacks Rank of #1 (Strong Buy), while Dream Finders Homes Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PHM is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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 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.
PHM currently has a forward P/E ratio of 7.95, while DFH has a forward P/E of 14.08. We also note that PHM has a PEG ratio of 0.50. 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. DFH currently has a PEG ratio of 1.16.
Another notable valuation metric for PHM is its P/B ratio of 1.78. 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, DFH has a P/B of 3.28.
These are just a few of the metrics contributing to PHM's Value grade of B and DFH's Value grade of C.
PHM sticks out from DFH in both our Zacks Rank and Style Scores models, so value investors will likely feel that PHM is the better option right now.
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PHM vs. DFH: Which Stock Is the Better Value Option?
Investors with an interest in Building Products - Home Builders stocks have likely encountered both PulteGroup (PHM - Free Report) and Dream Finders Homes Inc. (DFH - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Currently, PulteGroup has a Zacks Rank of #1 (Strong Buy), while Dream Finders Homes Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PHM is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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 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.
PHM currently has a forward P/E ratio of 7.95, while DFH has a forward P/E of 14.08. We also note that PHM has a PEG ratio of 0.50. 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. DFH currently has a PEG ratio of 1.16.
Another notable valuation metric for PHM is its P/B ratio of 1.78. 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, DFH has a P/B of 3.28.
These are just a few of the metrics contributing to PHM's Value grade of B and DFH's Value grade of C.
PHM sticks out from DFH in both our Zacks Rank and Style Scores models, so value investors will likely feel that PHM is the better option right now.