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IBP or JHX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Installed Building Products (IBP - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Installed Building Products and James Hardie have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
IBP currently has a forward P/E ratio of 14.92, while JHX has a forward P/E of 20.55. We also note that IBP has a PEG ratio of 1.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. JHX currently has a PEG ratio of 2.25.
Another notable valuation metric for IBP is its P/B ratio of 6.56. 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 7.90.
These are just a few of the metrics contributing to IBP's Value grade of A and JHX's Value grade of C.
Both IBP and JHX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IBP is the superior value option right now.
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IBP or JHX: Which Is the Better Value Stock Right Now?
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Installed Building Products (IBP - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Installed Building Products and James Hardie have a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
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.
IBP currently has a forward P/E ratio of 14.92, while JHX has a forward P/E of 20.55. We also note that IBP has a PEG ratio of 1.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. JHX currently has a PEG ratio of 2.25.
Another notable valuation metric for IBP is its P/B ratio of 6.56. 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 7.90.
These are just a few of the metrics contributing to IBP's Value grade of A and JHX's Value grade of C.
Both IBP and JHX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IBP is the superior value option right now.