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HLMN vs. HCMLY: Which Stock Is the Better Value Option?

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Investors interested in Building Products - Miscellaneous stocks are likely familiar with Hillman Solutions Corp. (HLMN - Free Report) and Holcim Ltd Unsponsored ADR (HCMLY - 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 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.

Hillman Solutions Corp. has a Zacks Rank of #2 (Buy), while Holcim Ltd Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HLMN 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 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.

HLMN currently has a forward P/E ratio of 15.85, while HCMLY has a forward P/E of 20.19. We also note that HLMN has a PEG ratio of 1.32. 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. HCMLY currently has a PEG ratio of 1.54.

Another notable valuation metric for HLMN is its P/B ratio of 1.53. 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, HCMLY has a P/B of 2.65.

These are just a few of the metrics contributing to HLMN's Value grade of B and HCMLY's Value grade of C.

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

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