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OC vs. AWI: 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 Armstrong World Industries (AWI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Owens Corning is sporting a Zacks Rank of #1 (Strong Buy), while Armstrong World Industries has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OC 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OC currently has a forward P/E ratio of 10.73, while AWI has a forward P/E of 17.94. We also note that OC has a PEG ratio of 1.05. 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. AWI currently has a PEG ratio of 2.12.
Another notable valuation metric for OC is its P/B ratio of 2.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AWI has a P/B of 7.42.
These are just a few of the metrics contributing to OC's Value grade of A and AWI's Value grade of C.
OC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OC is likely the superior value option right now.
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OC vs. AWI: Which Stock Should Value Investors Buy Now?
Investors with an interest in Building Products - Miscellaneous stocks have likely encountered both Owens Corning (OC - Free Report) and Armstrong World Industries (AWI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Owens Corning is sporting a Zacks Rank of #1 (Strong Buy), while Armstrong World Industries has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OC 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
OC currently has a forward P/E ratio of 10.73, while AWI has a forward P/E of 17.94. We also note that OC has a PEG ratio of 1.05. 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. AWI currently has a PEG ratio of 2.12.
Another notable valuation metric for OC is its P/B ratio of 2.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AWI has a P/B of 7.42.
These are just a few of the metrics contributing to OC's Value grade of A and AWI's Value grade of C.
OC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that OC is likely the superior value option right now.