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CX vs. MLM: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either Cemex (CX - Free Report) or 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Cemex is sporting a Zacks Rank of #1 (Strong Buy), while Martin Marietta has a Zacks Rank of #3 (Hold). 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 piece of the puzzle 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 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.
CX currently has a forward P/E ratio of 8.12, while MLM has a forward P/E of 25.07. We also note that CX has a PEG ratio of 0.51. 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 1.21.
Another notable valuation metric for CX is its P/B ratio of 0.89. 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 4.17.
These are just a few of the metrics contributing to CX's Value grade of B and MLM's Value grade of D.
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 vs. MLM: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Building Products - Concrete and Aggregates sector might want to consider either Cemex (CX - Free Report) or 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Cemex is sporting a Zacks Rank of #1 (Strong Buy), while Martin Marietta has a Zacks Rank of #3 (Hold). 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 piece of the puzzle 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 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.
CX currently has a forward P/E ratio of 8.12, while MLM has a forward P/E of 25.07. We also note that CX has a PEG ratio of 0.51. 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 1.21.
Another notable valuation metric for CX is its P/B ratio of 0.89. 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 4.17.
These are just a few of the metrics contributing to CX's Value grade of B and MLM's Value grade of D.
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.