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TGLS vs. FAST: Which Stock Should Value Investors Buy Now?

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Investors interested in Building Products - Retail stocks are likely familiar with Tecnoglass (TGLS - Free Report) and Fastenal (FAST - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Both Tecnoglass and Fastenal have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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 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.

TGLS currently has a forward P/E ratio of 12.54, while FAST has a forward P/E of 21.38. We also note that TGLS has a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FAST currently has a PEG ratio of 1.53.

Another notable valuation metric for TGLS is its P/B ratio of 2.25. 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, FAST has a P/B of 6.83.

These metrics, and several others, help TGLS earn a Value grade of A, while FAST has been given a Value grade of D.

Both TGLS and FAST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TGLS is the superior value option right now.


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