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HDELY or KNF: 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 Heidelberg Materials AG Unsponsored ADR (HDELY - Free Report) and Knife River (KNF - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Heidelberg Materials AG Unsponsored ADR and Knife River are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HDELY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

HDELY currently has a forward P/E ratio of 7.67, while KNF has a forward P/E of 19.46. We also note that HDELY has a PEG ratio of 0.52. 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. KNF currently has a PEG ratio of 0.87.

Another notable valuation metric for HDELY is its P/B ratio of 0.92. 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, KNF has a P/B of 2.95.

Based on these metrics and many more, HDELY holds a Value grade of A, while KNF has a Value grade of C.

HDELY has seen stronger estimate revision activity and sports more attractive valuation metrics than KNF, so it seems like value investors will conclude that HDELY is the superior option right now.


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Heidelberg Materials AG Unsponsored ADR (HDELY) - free report >>

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