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TGLS vs. FAST: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Building Products - Retail sector might want to consider either Tecnoglass (TGLS - Free Report) or Fastenal (FAST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Tecnoglass and Fastenal are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TGLS has an improving earnings outlook. 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.

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.

TGLS currently has a forward P/E ratio of 9.71, while FAST has a forward P/E of 21.78. We also note that TGLS has a PEG ratio of 0.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FAST currently has a PEG ratio of 1.36.

Another notable valuation metric for TGLS is its P/B ratio of 1.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FAST has a P/B of 6.87.

Based on these metrics and many more, TGLS holds a Value grade of A, while FAST has a Value grade of C.

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


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Fastenal Company (FAST) - free report >>

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