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OC vs. CBPX: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Owens Corning (OC - Free Report) and Continental Building Products . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Owens Corning has a Zacks Rank of #2 (Buy), while Continental Building Products has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OC has an improving earnings outlook. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

OC currently has a forward P/E ratio of 12.71, while CBPX has a forward P/E of 16.14. We also note that OC has a PEG ratio of 1.55. 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. CBPX currently has a PEG ratio of 3.23.

Another notable valuation metric for OC is its P/B ratio of 1.46. 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, CBPX has a P/B of 2.77.

These are just a few of the metrics contributing to OC's Value grade of A and CBPX's Value grade of C.

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


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