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JELD vs. FND: Which Stock Is the Better Value Option?

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Investors interested in Building Products - Wood stocks are likely familiar with JELDWEN Holding, Inc. (JELD - Free Report) and Floor Decor Holdings, Inc. (FND - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

JELDWEN Holding, Inc. and Floor Decor Holdings, Inc. are both sporting a Zacks Rank of # 1 (Strong 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. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

JELD currently has a forward P/E ratio of 15.84, while FND has a forward P/E of 60.58. We also note that JELD has a PEG ratio of 0.81. 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. FND currently has a PEG ratio of 2.59.

Another notable valuation metric for JELD 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, FND has a P/B of 8.79.

Based on these metrics and many more, JELD holds a Value grade of A, while FND has a Value grade of F.

Both JELD and FND 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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