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JELD vs. TREX: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Building Products - Wood sector have probably already heard of JELD-WEN Holding, Inc. (JELD) and Trex (TREX - 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.

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.

Both JELD-WEN Holding, Inc. and Trex 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 piece of the puzzle for value investors.

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.

JELD currently has a forward P/E ratio of 16.55, while TREX has a forward P/E of 33.63. We also note that JELD has a PEG ratio of 1.71. 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. TREX currently has a PEG ratio of 3.36.

Another notable valuation metric for JELD is its P/B ratio of 3.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TREX has a P/B of 13.60.

These are just a few of the metrics contributing to JELD's Value grade of B and TREX's Value grade of F.

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


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