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CODYY vs. BLD: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Compagnie de Saint-Gobain - Unsponsored ADR (CODYY - Free Report) and TopBuild (BLD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.

Compagnie de Saint-Gobain - Unsponsored ADR and TopBuild are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CODYY likely has seen a stronger improvement to its earnings outlook than BLD has recently. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CODYY currently has a forward P/E ratio of 15.54, while BLD has a forward P/E of 19.31. We also note that CODYY has a PEG ratio of 4.05. 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. BLD currently has a PEG ratio of 4.24.

Another notable valuation metric for CODYY is its P/B ratio of 2.16. 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, BLD has a P/B of 5.2.

Based on these metrics and many more, CODYY holds a Value grade of B, while BLD has a Value grade of C.

CODYY sticks out from BLD in both our Zacks Rank and Style Scores models, so value investors will likely feel that CODYY is the better option right now.


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TopBuild Corp. (BLD) - free report >>

Compagnie de Saint-Gobain - Unsponsored ADR (CODYY) - free report >>

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