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CX or MLM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX - Free Report) and Martin Marietta (MLM - 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 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.
Right now, Cemex is sporting a Zacks Rank of #1 (Strong Buy), while Martin Marietta has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CX is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
CX currently has a forward P/E ratio of 8.61, while MLM has a forward P/E of 23.99. We also note that CX has a PEG ratio of 0.54. 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. MLM currently has a PEG ratio of 1.16.
Another notable valuation metric for CX is its P/B ratio of 0.94. 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, MLM has a P/B of 4.
These are just a few of the metrics contributing to CX's Value grade of B and MLM's Value grade of C.
CX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CX is likely the superior value option right now.
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CX or MLM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Building Products - Concrete and Aggregates sector have probably already heard of Cemex (CX - Free Report) and Martin Marietta (MLM - 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 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.
Right now, Cemex is sporting a Zacks Rank of #1 (Strong Buy), while Martin Marietta has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CX is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
CX currently has a forward P/E ratio of 8.61, while MLM has a forward P/E of 23.99. We also note that CX has a PEG ratio of 0.54. 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. MLM currently has a PEG ratio of 1.16.
Another notable valuation metric for CX is its P/B ratio of 0.94. 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, MLM has a P/B of 4.
These are just a few of the metrics contributing to CX's Value grade of B and MLM's Value grade of C.
CX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CX is likely the superior value option right now.