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

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Investors interested in Building Products - Miscellaneous stocks are likely familiar with TopBuild (BLD - Free Report) and GCP Applied Technologies . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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.

Right now, TopBuild is sporting a Zacks Rank of #1 (Strong Buy), while GCP Applied Technologies has a Zacks Rank of #4 (Sell). This means that BLD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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 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.

BLD currently has a forward P/E ratio of 15.99, while GCP has a forward P/E of 24.67. We also note that BLD has a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GCP currently has a PEG ratio of 1.37.

Another notable valuation metric for BLD is its P/B ratio of 2.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GCP has a P/B of 3.76.

These are just a few of the metrics contributing to BLD's Value grade of B and GCP's Value grade of D.

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


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