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KNF vs. JHX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Knife River (KNF - Free Report) and James Hardie (JHX - 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.
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.
Knife River and James Hardie are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KNF 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.
KNF currently has a forward P/E ratio of 19.70, while JHX has a forward P/E of 21.71. We also note that KNF has a PEG ratio of 2.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JHX currently has a PEG ratio of 2.78.
Another notable valuation metric for KNF is its P/B ratio of 3.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JHX has a P/B of 7.66.
Based on these metrics and many more, KNF holds a Value grade of B, while JHX has a Value grade of C.
KNF stands above JHX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNF is the superior value option right now.
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KNF vs. JHX: Which Stock Is the Better Value Option?
Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Knife River (KNF - Free Report) and James Hardie (JHX - 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.
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.
Knife River and James Hardie are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KNF 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.
KNF currently has a forward P/E ratio of 19.70, while JHX has a forward P/E of 21.71. We also note that KNF has a PEG ratio of 2.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JHX currently has a PEG ratio of 2.78.
Another notable valuation metric for KNF is its P/B ratio of 3.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JHX has a P/B of 7.66.
Based on these metrics and many more, KNF holds a Value grade of B, while JHX has a Value grade of C.
KNF stands above JHX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNF is the superior value option right now.