We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TTAM vs. IBP: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Building Products - Miscellaneous stocks are likely familiar with Titan America (TTAM - Free Report) and Installed Building Products (IBP - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Titan America and Installed Building Products are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that TTAM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
TTAM currently has a forward P/E ratio of 16.93, while IBP has a forward P/E of 22.10. We also note that TTAM has a PEG ratio of 1.18. 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. IBP currently has a PEG ratio of 5.25.
Another notable valuation metric for TTAM is its P/B ratio of 3.2. 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, IBP has a P/B of 9.11.
These metrics, and several others, help TTAM earn a Value grade of B, while IBP has been given a Value grade of D.
TTAM 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 TTAM is likely the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
TTAM vs. IBP: Which Stock Should Value Investors Buy Now?
Investors interested in Building Products - Miscellaneous stocks are likely familiar with Titan America (TTAM - Free Report) and Installed Building Products (IBP - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Titan America and Installed Building Products are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This means that TTAM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
TTAM currently has a forward P/E ratio of 16.93, while IBP has a forward P/E of 22.10. We also note that TTAM has a PEG ratio of 1.18. 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. IBP currently has a PEG ratio of 5.25.
Another notable valuation metric for TTAM is its P/B ratio of 3.2. 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, IBP has a P/B of 9.11.
These metrics, and several others, help TTAM earn a Value grade of B, while IBP has been given a Value grade of D.
TTAM 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 TTAM is likely the superior value option right now.