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OC vs. JHX: Which Stock Is the Better Value Option?
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Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Owens Corning (OC - Free Report) and James Hardie (JHX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Owens Corning and James Hardie are holding a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 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.
OC currently has a forward P/E ratio of 11.94, while JHX has a forward P/E of 20.86. We also note that OC has a PEG ratio of 2.08. 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 4.33.
Another notable valuation metric for OC is its P/B ratio of 2.41. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, JHX has a P/B of 7.15.
These metrics, and several others, help OC earn a Value grade of B, while JHX has been given a Value grade of D.
Both OC and JHX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OC is the superior value option right now.
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OC vs. JHX: Which Stock Is the Better Value Option?
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Owens Corning (OC - Free Report) and James Hardie (JHX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Owens Corning and James Hardie are holding a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 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.
OC currently has a forward P/E ratio of 11.94, while JHX has a forward P/E of 20.86. We also note that OC has a PEG ratio of 2.08. 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 4.33.
Another notable valuation metric for OC is its P/B ratio of 2.41. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, JHX has a P/B of 7.15.
These metrics, and several others, help OC earn a Value grade of B, while JHX has been given a Value grade of D.
Both OC and JHX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OC is the superior value option right now.