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HCMLY or JHX: Which Is the Better Value Stock Right Now?
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Investors interested in Building Products - Miscellaneous stocks are likely familiar with Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and James Hardie (JHX - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Holcim Ltd Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while James Hardie has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HCMLY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
HCMLY currently has a forward P/E ratio of 10.76, while JHX has a forward P/E of 19.53. We also note that HCMLY has a PEG ratio of 1.55. 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. JHX currently has a PEG ratio of 6.95.
Another notable valuation metric for HCMLY is its P/B ratio of 1.29. 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, JHX has a P/B of 6.33.
Based on these metrics and many more, HCMLY holds a Value grade of B, while JHX has a Value grade of C.
HCMLY has seen stronger estimate revision activity and sports more attractive valuation metrics than JHX, so it seems like value investors will conclude that HCMLY is the superior option right now.
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HCMLY or JHX: Which Is the Better Value Stock Right Now?
Investors interested in Building Products - Miscellaneous stocks are likely familiar with Holcim Ltd Unsponsored ADR (HCMLY - Free Report) and James Hardie (JHX - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Holcim Ltd Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while James Hardie has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HCMLY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
HCMLY currently has a forward P/E ratio of 10.76, while JHX has a forward P/E of 19.53. We also note that HCMLY has a PEG ratio of 1.55. 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. JHX currently has a PEG ratio of 6.95.
Another notable valuation metric for HCMLY is its P/B ratio of 1.29. 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, JHX has a P/B of 6.33.
Based on these metrics and many more, HCMLY holds a Value grade of B, while JHX has a Value grade of C.
HCMLY has seen stronger estimate revision activity and sports more attractive valuation metrics than JHX, so it seems like value investors will conclude that HCMLY is the superior option right now.